How the calculator works
Profit per sale = price the customer pays − product cost − payment fees (percentage + fixed fee) − shipping you pay − an allowance for revenue lost to returns.
Break-even price is the lowest price at which a sale doesn't lose money once all of those costs are covered. The deepest discount before a loss is how far you can discount from your current price before each sale starts losing money.
Why discounts matter so much
Fees and returns shrink with the price, but your product cost and shipping don't. A product with a healthy margin at full price can lose money on every sale during a promotion. Try raising the discount above to see where your break-even point is.
What isn't included
- Ad spend. If you advertise a product, subtract your ad cost per sale too.
- Taxes, and fixed costs like rent, staff, apps and subscriptions.