profit-calculator
Profit Calculator
Many ecommerce brands think they are profitable because revenue is growing, only to discover at year-end that certain SKUs or channels have been losing money on every order. Profit Calculator walks you through a full per-unit profit teardown so you can see exactly which products and channels deserve more budget and which should be repriced, rebundled, or killed.
Use when
- The operator says "my TikTok Shop sales look great but the bank account isn't growing — can we figure out what's actually making money?"
- A Shopify seller asks "if I raise the price by $2, will that offset my new 3PL rate and higher Meta CPMs, or am I still underwater?"
- An Amazon FBA brand wants to compare a single SKU's contribution margin between FBA, FBM, and their own DTC store side by side before reallocating inventory.
- A founder is preparing a board update and needs a clean per-SKU contribution margin waterfall that rolls up to a blended gross margin with and without advertising.
What this skill does
Takes a list of SKUs plus channel-level fee structures and produces a per-unit profit waterfall for each SKU on each channel. The calculation starts from the landed product cost (COGS including freight and duty), subtracts platform commissions and payment processing, then outbound shipping and pick-and-pack fees, then amortized ad spend using either blended MER or channel-specific ROAS, then refund and return cost reserves, and finally a per-unit allocation of fixed overhead. The output flags channels where a SKU is margin-dilutive and recommends a minimum retail price to hit a target contribution margin.