Product Profitability Calculator

Most Product Sellers Do Not Actually Know If They Are Profitable

Ask any ecommerce founder if their products are profitable, and you'll get a confident "yes." Ask them to show you the math, and that confidence evaporates. The uncomfortable truth is that most sellers confuse revenue with profit, and that confusion is expensive.

Revenue tells you how much money came in. Profit tells you how much you actually kept after paying for everything. These are not the same thing, and treating them as equivalent is how brands go bankrupt while their dashboards show "growth."

Platform Fees Materially Affect Margins

Consider a $100 product. Shopify takes 2.9% + $0.30 per transaction. That's $3.20 gone before you've accounted for anything else. On a 40% margin product, that platform fee just ate 8% of your gross profit. And that's before payment processing, subscription fees, or app costs.

These fees compound. They scale with every sale, which means your margin shrinks as you grow unless you're actively managing them. Founders who ignore platform fees wake up six months later wondering why their profits didn't scale with their revenue.

Refunds Destroy Margins More Than Founders Expect

A 15% refund rate sounds manageable. But refunds don't just reduce revenue—they destroy profit disproportionately. When someone returns a $100 product, you lose the revenue, but you've already paid the ad cost, the platform fee, and possibly shipping. That's not a $100 loss; it's a $120+ loss once you factor in sunk costs.

High refund rates are margin killers because they hit you twice: once on the revenue side and again on the cost side. If your refund rate is above 10%, you're bleeding money faster than your gross margin can absorb.

Use This Calculator As Your Fast Reality Check

This calculator strips away the complexity and gives you a clear answer: are you actually making money on this product, or are you fooling yourself with vanity metrics? Enter your numbers, and you'll get an instant profitability verdict along with the break-even ROAS you need to stay above water.

The free calculation shows you whether you're profitable and what's killing your margins. The email-gated insights break down your cost structure, rank your biggest profit drains, and tell you exactly where to focus your attention.

Want to Track This in Real Time Without Spreadsheets?

MerchantFlow tracks product-level profitability automatically, pulling in ad spend, refunds, fees, and COGS so you always know which products are actually making money. No more guessing, no more spreadsheets, just clean profit data you can trust.