How It Works
Three simple steps to get accurate calculations
1
Enter Product Costs
Input manufacturing, design, and material costs for your merchandise.
2
Add Platform Fees
Include selling fees from Etsy, Amazon, your website, or other platforms.
3
Set Your Price
Determine optimal selling price based on desired profit margins.
4
Calculate Profits
See net profit per item and total earnings projections.
Merch Profit Calculator
Calculate the profitability of your merchandise business including all costs and fees.
Share Your Scenario
Copy link with your current inputs
Results
Net Profit per Unit
$11.75
47.0% gross margin
Expected Total Profit$675.00
Break-Even Units43 units
Gross Margin47.0%
Platform Fee per Unit$1.25
Revenue Share Breakdown
COGS
Ship
Profit
Cost of Goods
32.0%Shipping & Fulfillment
16.0%Platform Fees
5.0%Profit
47.0%Financial Summary
Total Revenue$2,500.00
Total Costs$1,825.00
Variable Cost per Unit$13.25
Net Profit$675.00
Business Insights
Solid Profitability
Your business is projected to generate $675.00 in profit with a healthy 47.0% gross margin.
Achievable Break-Even
You only need 43 units to break even, which is well within your projected sales volume. You'll cover fixed costs early.
Optimization Tips
To improve profitability: negotiate bulk discounts with suppliers, optimize product designs for cost efficiency, consider premium pricing for unique items, and explore multiple sales channels to reduce platform dependency.
Frequently Asked Questions
What profit margin should I target for merchandise?
Aim for 40-60% profit margins on merchandise. Custom or niche items can achieve higher margins (60-80%), while competitive markets may require lower margins (30-50%).
How do I price merchandise competitively?
Research competitor pricing, calculate your true costs (including time), add desired profit margin, then test market response. Start higher and adjust down if needed.
What are typical platform fees for selling merchandise?
Etsy: 6.5% transaction + 3% payment. Amazon: 8-15% referral fees. eBay: 10-13% final value. Your own website: 2.9% + $0.30 payment processing.
How do I reduce merchandise production costs?
Order larger quantities for bulk discounts, negotiate with suppliers, optimize designs for efficient production, choose cost-effective materials, and eliminate unnecessary features.
Should I factor in my time for design and marketing?
Yes, include design time, marketing, customer service, and shipping time in your cost calculations. Value your time at least $15-25/hour when calculating true profitability.
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Results are estimates for informational purposes only. Consult professionals for important decisions.