AI Tools
Profitability Calculator
The Profitability Calculator helps you estimate the true profit margin of a product before you invest. Enter the product cost, selling price, shipping, ad spend, and other expenses to see your break-even point and projected profit per sale.
Inputs
- Product cost, What you pay your supplier per unit.
- Selling price, What you charge customers.
- Shipping cost, Per-unit shipping to the customer.
- Ad spend per sale, Your average customer acquisition cost (CPA).
- Platform fees, Payment processing and platform fees (e.g., Shopify, Polar).
- Taxes, Applicable sales tax or VAT.
Calculating Profitability
- 1
Open the calculator
Click Profitability Calculator in the sidebar.
- 2
Enter costs
Fill in all the cost fields with your best estimates.
- 3
View results
The calculator shows your profit per sale, profit margin percentage, break-even ad spend, and recommended selling price.
- 4
Adjust and compare
Tweak the numbers to see how different pricing or supplier costs affect your margins.
Rule of thumb
Aim for a profit margin of at least 20-30% after all costs. If your margin is below 15%, consider negotiating with your supplier or increasing your selling price.
Last reviewed 2026-11-01