Estimate product margin with explicit cost assumptions

A sale price minus supplier price is not the profit. Shipping, packaging, marketplace fees and expected return losses can change the decision.

Prepare your input

Choose one currency and enter sale price, product cost, shipping, packaging, fixed fee, percentage fee and return-loss assumptions. Use the same unit basis for every cost. Do not double-count a loss already included elsewhere.

Work through the task

In Product Margin Worksheet, enter one scenario or import a batch CSV. Copy a selected scenario to test a different price or cost while leaving the first one intact. Review contribution, margin percent, markup percent and break-even estimate, then export. Contribution subtracts fixed costs, percentage fees and the modeled return reserve from sale price. Margin divides contribution by sale price; markup uses the full modeled cost basis.

Example to try

If a product sells for 100, costs 50, shipping is 10 and marketplace fees are 10, contribution is already below a simple 50-percent gross margin claim, even before packaging and returns. Copy the scenario and raise the fee or return assumption to see whether the planned discount remains viable. Document which costs are estimates.

Check the result

Recalculate one example independently, inspect assumptions with a buyer and test a worse return rate before deciding on a price. Keep actual accounting and tax decisions in the appropriate systems.

Know the current limits

There is no currency conversion or tax advice. Estimates depend on the costs you enter and cannot guarantee profit.