---
title: "Profitability Calculator"
description: "Calculate product margins before you invest."
lang: en
updated: 2026-11-01
source: "https://www.drilify.com/documentation/profitability-calculator"
version: 5f6f772e60fd
---
# 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

:::steps
### Open the calculator
Click **Profitability Calculator** in the sidebar.

### Enter costs
Fill in all the cost fields with your best estimates.

### View results
The calculator shows your profit per sale, profit margin percentage, break-even ad spend, and recommended selling price.

### Adjust and compare
Tweak the numbers to see how different pricing or supplier costs affect your margins.
:::

:::callout tip 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.
:::