Free product profitability tool

Product Unit Economics Calculator

See how much contribution profit is left from every unit sold after discounts, returns, product cost, fulfillment, payment fees and other variable expenses.

Simple calculator

Enter the economics of one sale

Updates live

Selling price

Average selling price per unit

Average discount

Variable cost per unit

Product / manufacturing cost

Packaging + fulfillment

Shipping subsidy / delivery cost

Other variable cost

Transaction leakage

Payment / platform fee

Fixed transaction fee

Return / refund rate

Planning

Monthly units sold

units

Monthly fixed overhead

Contribution profit Realized revenue after discounts and expected returns, less all costs that increase when another unit is sold.

Unit result

Contribution profit per unit

Contribution profit per unit sold $28.20 41.2% contribution margin

Realized revenue per unit$68.40

Healthy contribution

Total variable cost / unit$40.20

Product cost share35.1%

Monthly contribution profit$28,200

Monthly profit after fixed overhead$16,200

Break-even units / month426

Break-even selling price$45.30

One-unit value bridge$75.00 list price

Discount + returns

-$6.60

Variable costs

-$40.20

Contribution

$28.20

OfficeQ readout

Each unit contributes about $28 toward fixed overhead and profit after the modeled variable costs and transaction leakage.

Advanced calculator

Build the complete product economics

Full margin model

Price & realized revenue

List price / unit

Average discount

Return / refund rate

Revenue lost when returned

Use less than 100% if part of returned value is recovered.

Product & fulfillment cost

Manufacturing / purchase cost

Inbound freight & duties

Packaging

Pick, pack & fulfillment

Shipping subsidy / delivery

Warranty / support reserve

Other variable cost

Return processing cost

Transaction & selling fees

Payment-processing fee

Fixed payment fee

Marketplace / channel fee

Sales commission

Customer acquisition

Customer acquisition cost

Units per order

units

Orders from new customers

Volume & fixed cost

Monthly units sold

units

Monthly fixed overhead

Target contribution margin

Target operating profit / month

Advanced contribution Contribution profit is calculated before fixed overhead. CAC is shown separately so you can compare product economics before and after acquisition spending.

Advanced result

Product profitability stack

Contribution profit before CAC $28.10 41.1% contribution margin

Contribution after CAC allocation$16.1023.5% of realized revenue

Monthly operating profit$4,100After fixed overhead and allocated CAC

Realized revenue / unit$68.40

Variable cost before CAC$40.30

CAC allocated / unit$12.00

Break-even units / month746

Price for target margin$73.70

Units for target monthly profit1,367

Acquisition headroom$40.25 max CAC / new customer

Monthly contribution before CAC$28,100

Monthly allocated CAC$12,000

Monthly fixed overhead$12,000

Operating margin on realized revenue6.0%

OfficeQ readout

The product has positive contribution economics, but acquisition spending materially reduces profit per unit.

Return sensitivity

Contribution as return rate changes

Other assumptions unchanged

Return rate	Realized revenue	Contribution / unit	Contribution margin	After-CAC contribution	Monthly profit	Signal

Price sensitivity

Unit economics at different selling prices

Discount percentage held constant

List price	Realized revenue	Contribution / unit	Contribution margin	After-CAC contribution	Monthly operating profit

One-unit cost stack

Where each dollar goes

Current assumptions

List price$75.00

Discount + expected returns-$6.60

Product + logistics-$39.00

Transaction + selling fees-$1.30

Contribution before CAC$28.10

Contribution after CAC$16.10

Reading the result

Gross margin and contribution margin are not the same thing.

Gross margin often stops at product or manufacturing cost. Contribution margin goes further by subtracting the variable expenses created by each additional sale, such as fulfillment, shipping subsidies, payment fees, commissions, return processing and warranty reserves.

Fixed overhead is kept separate because it does not normally change with one additional unit. Positive contribution profit means each sale helps cover fixed overhead and profit, but the business can still lose money overall if volume is too low or customer acquisition is too expensive.

Contribution profitRealized unit revenue less all modeled variable costs tied to another sale.

Contribution marginContribution profit divided by realized revenue, not by list price.

After-CAC contributionContribution profit after allocating customer-acquisition spending across units sold.