Product profit and profit margin
Contribution per unit = sale price − product cost − shipping − packaging − advertising − fixed selling fee − (sale price × percentage fee). Profit margin = contribution per unit ÷ sale price × 100.
Understand per-unit contribution after product costs, shipping, packaging, ads and marketplace fees.
See what remains after product costs, shipping, and selling fees.
A quick explanation, practical example, and considerations to help you use your result.
Contribution per unit = sale price − product cost − shipping − packaging − advertising − fixed selling fee − (sale price × percentage fee). Profit margin = contribution per unit ÷ sale price × 100.
For example, a $35 sale with $12 product cost, $5 shipping, $1 packaging, $2 advertising, a $0.30 fixed fee and a 10% selling fee leaves $11.20 in contribution, or 32%.
These calculations are estimates for decision support, not accounting or financial advice. Use actual fees and costs, and account for taxes, returns, discounts, and other expenses separately when applicable.
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No. Results are estimates for decision support. Check actual fees, taxes, returns, and other costs.
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