How the calculation works
The discounted price is the sale price minus the promotion discount. The fee is charged on the discounted price. Unit profit is the discounted price minus the fee, product cost, shipping, fixed fees and advertising. If you enter a VAT rate, all amounts are treated as VAT-inclusive and profit is shown excluding VAT.
The deepest affordable discount is the point where the discounted price, after the fee, only just covers product cost, shipping, fixed fees and advertising.
Returns, cancellations, payout deductions, stock levels and how a campaign changes volume. Those come from your real orders, which is what the DataSync workflows read.
Frequently asked questions
Where do I find my fee rate?
Referral or transaction fees depend on the category and your seller agreement. Take the current rate from Seller Central, your Shopify plan or your payment provider and enter it here; the calculator does not assume a rate.
How is VAT handled?
If you enter a VAT rate, every amount is treated as VAT-inclusive at that rate and profit is shown excluding VAT. If your items carry different VAT rates, the result is an approximation.
Who pays for the promotion discount?
The calculator assumes the seller funds the whole discount and charges the fee on the discounted price. If the marketplace co-funds the promotion, enter only your share of the discount.
Are returns included?
No. This tool shows the unit economics of a single order. To see returns, cancellations and payout deductions on your real orders, see the Order Profitability and Remittance workflows.
See this on every real order, not one product.
Promotion Calculator and Order Profitability read your marketplace orders, fees, returns and ad spend, so the margin is calculated on what actually happened.