Product Profit Calculator

The all-in-one profit calculator: enter every cost once and see net profit, margin, ROI, break-even price and how much you can spend on ads.

How it works

Fill in the costs you know. Leave anything that doesn't apply at zero.

Percentage fees apply to the selling price (after discount); fixed costs are per order.

Results and the pricing scenario table update live as you type.

Formula & methodology

  • Revenue = Selling price − Discount
  • Total cost = Product + Shipping + Packaging + Platform fee + Payment fee + GST + Ads + Returns + Other
  • Net profit = Revenue − Total cost
  • Profit margin = Net profit ÷ Revenue × 100
  • ROI = Net profit ÷ Total cost × 100

Worked example

Example: ₹999 price, ₹400 cost, ₹60 shipping, 10% platform fee, ₹70 ads.

  • Platform fee = 10% × ₹999 = ₹99.90
  • Payment fee = 2% × ₹999 = ₹19.98
  • Total cost = ₹400 + ₹60 + ₹20 + ₹99.90 + ₹19.98 + ₹70 = ₹669.88
  • Net profit = ₹999 − ₹669.88 = ₹329.12
  • Margin = ₹329.12 ÷ ₹999 = 32.9%

Important assumptions

  • The calculator assumes the costs you enter are complete — hidden costs you don't enter won't appear.
  • Percentage fees are charged on the discounted selling price.
  • Tax treatment is simplified; verify GST input credits for your business.

Common mistakes

  • Leaving out packaging, payment gateway or return costs.
  • Using MRP instead of the actual price the customer pays after discount.
  • Treating gross profit (price − cost) as take-home profit.

Frequently asked questions

What's the difference between margin and markup?

Margin is profit as a % of selling price; markup is profit as a % of cost. A 50% markup on ₹400 gives ₹600, which is a 33% margin.

What is 'maximum ad cost'?

It's the most you could spend on advertising per order before net profit hits zero — a quick ceiling for your target ACOS/CPA.

Is this only for e-commerce?

No. Freelancers and small businesses can use it for any priced product or service by mapping their costs to the fields.

Related calculators