{
  "slug": "merch-profit",
  "title": "Merch Profit Calculator",
  "heading": "Creator Merch Profit Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/merch-profit",
  "summary": "Profit per unit and per drop, print-on-demand or bulk.",
  "description": "Print-on-demand keeps risk near zero but caps margin around 25–35%. Bulk flips that: better unit economics, but you eat unsold inventory, so model the sell-through.",
  "formula": "Profit = (Price − unit cost − fees − shipping) × units sold − fixed costs.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=merch-profit",
  "inputs": [
    {
      "id": "price",
      "label": "Retail price",
      "kind": "number",
      "hint": null,
      "default": 38,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "unitCost",
      "label": "Unit cost",
      "kind": "number",
      "hint": null,
      "default": 14,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "shipping",
      "label": "Shipping cost you absorb",
      "kind": "number",
      "hint": null,
      "default": 3,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "fees",
      "label": "Payment + platform fees",
      "kind": "number",
      "hint": null,
      "default": 6,
      "unit": "%",
      "min": 0,
      "max": 30
    },
    {
      "id": "units",
      "label": "Units in the drop",
      "kind": "number",
      "hint": null,
      "default": 250,
      "unit": null,
      "min": 0,
      "max": null
    },
    {
      "id": "sell",
      "label": "Sell-through rate",
      "kind": "number",
      "hint": null,
      "default": 80,
      "unit": "%",
      "min": 0,
      "max": 100
    },
    {
      "id": "fixed",
      "label": "Fixed costs (design, samples, ads)",
      "kind": "number",
      "hint": null,
      "default": 800,
      "unit": "$",
      "min": 0,
      "max": null
    }
  ],
  "outputs": [
    {
      "id": "profit",
      "label": "Profit on the drop",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "per",
      "label": "Contribution per unit",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "revenue",
      "label": "Revenue",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "margin",
      "label": "Net margin",
      "format": "percent",
      "hint": null,
      "primary": false
    },
    {
      "id": "sold",
      "label": "Units sold",
      "format": "number",
      "hint": null,
      "primary": false
    },
    {
      "id": "breakeven",
      "label": "Units to break even",
      "format": "number",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Retail price: 38 $",
      "Unit cost: 14 $",
      "Shipping cost you absorb: 3 $",
      "Payment + platform fees: 6 %",
      "Units in the drop: 250",
      "Sell-through rate: 80 %",
      "Fixed costs (design, samples, ads): 800 $"
    ],
    "outputs": [
      "Profit on the drop: $2,244.00",
      "Contribution per unit: $18.72",
      "Revenue: $7,600.00",
      "Net margin: 29.5%",
      "Units sold: 200",
      "Units to break even: 43"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter retail price ($).",
      "Enter unit cost ($).",
      "Enter shipping cost you absorb ($).",
      "Enter payment + platform fees (%).",
      "Enter units in the drop.",
      "Enter sell-through rate (%).",
      "Enter fixed costs (design, samples, ads) ($).",
      "Read your profit on the drop on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "price": 23,
        "unitCost": 8,
        "shipping": 2,
        "fees": 3.5999999999999996,
        "units": 150,
        "sell": 50,
        "fixed": 500
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "price": 38,
        "unitCost": 14,
        "shipping": 3,
        "fees": 6,
        "units": 250,
        "sell": 80,
        "fixed": 800
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "price": 61,
        "unitCost": 22,
        "shipping": 5,
        "fees": 9.600000000000001,
        "units": 400,
        "sell": 100,
        "fixed": 1300
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "How does the creator merch profit calculator work?",
      "a": "Print-on-demand keeps risk near zero but caps margin around 25–35%. Bulk flips that: better unit economics, but you eat unsold inventory, so model the sell-through. The underlying maths is: Profit = (Price − unit cost − fees − shipping) × units sold − fixed costs."
    },
    {
      "q": "What do I need to enter?",
      "a": "7 values: retail price, unit cost, shipping cost you absorb, payment + platform fees, units in the drop, sell-through rate, and fixed costs (design, samples, ads). Each field starts with a sensible default, so you can change one number at a time and watch the result move."
    },
    {
      "q": "What does the profit on the drop result mean?",
      "a": "It is returned as a money amount in US dollars and updates live as you edit the inputs, so you can compare two or three versions of a scenario in a few seconds."
    },
    {
      "q": "Is this calculator free, and do I need an account?",
      "a": "Yes, it's free, and no account is required. Nothing you type is stored on our servers — the maths runs entirely in your browser."
    },
    {
      "q": "How accurate is the result?",
      "a": "It applies the standard formula exactly, so the arithmetic is precise. Results are estimates before tax, fees, and inflation unless an input explicitly covers them."
    },
    {
      "q": "Who is this tool for?",
      "a": "It's built for anyone comparing money scenarios before committing — budgeting a payment, sanity-checking a quote, or seeing what a change in rate or term actually costs."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/digital-product-pricing",
    "https://www.revenuelab.fyi/toolbox/blog-income"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Merch Profit Calculator (https://www.revenuelab.fyi/toolbox/merch-profit)"
}