A custom merchandise profit calculator shows which products make the most money after production costs and marketplace fees. Add your cost and price for each product, select your selling platform, and the comparison table sorts by margin so you can focus on your most profitable items.
Products
| Product | Production Cost ($) | Sell Price ($) | Est. Monthly Units | Active |
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Profit Margin Comparison
Sorted by margin
| Product | Prod. Cost | Sell Price | Fees | Profit/Unit | Margin % | Monthly Profit |
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How to Compare Merchandise Profit Margins
When running a custom merchandise business, product selection matters as much as pricing. Some products look profitable until you factor in Etsy's 6.5% fee, payment processing, and packaging — the comparison table reveals your true margins at a glance.
Step 1: Set Your Selling Platform
Select your marketplace — Etsy, Amazon Handmade, Shopify, or direct (no marketplace fees). Etsy charges $0.20 listing + 6.5% transaction + 3% + $0.25 payment processing. Amazon Handmade charges 15% referral fee. Your own website (direct) has only payment processor fees (~2.9% + $0.30 for Stripe). The fee structure auto-applies to all products.
Step 2: Enter Product Costs and Prices
For each product you sell or are considering selling, enter the total production cost (including materials, labor, and packaging) and your selling price. Toggle off products you don't currently sell — they'll be excluded from the comparison. Enter estimated monthly units sold for each to see projected monthly profit.
Step 3: Read the Comparison Table
The table sorts by margin, profit per unit, or monthly profit depending on your goal. A product with a 72% margin on a $5 sticker earns $3.60 — good for stocking stuffers. A hoodie at 45% margin on $40 earns $18 per unit — better revenue per transaction. Balance high-margin low-ticket items with lower-margin high-ticket products for optimal business health.
Focus on Cumulative Monthly Profit
High margin doesn't always mean high profit. A product at 75% margin selling 5 units/month ($37.50 profit) underperforms one at 45% margin selling 50 units/month ($450 profit). Use monthly profit projection to identify which products are worth scaling with ads or more inventory.
FAQ
What merchandise has the highest profit margin?
Stickers typically have the highest margin percentage (70–80%) because they cost $0.10–$0.50 to produce but sell for $2–$5 each. Ornaments, keychains, and small home decor items also have excellent margins. T-shirts and hoodies have lower percentage margins but higher dollar profit per item, making them better for revenue volume.
How do Etsy fees affect merchandise profit?
Etsy charges: $0.20 listing fee per item, 6.5% transaction fee on sale price, and 3% + $0.25 payment processing. On a $25 hoodie sale, fees total approximately $2.50, reducing a $12 gross profit to $9.50. Factor fees in from the start — it's a common mistake to price at desired margin before accounting for marketplace fees.
What is a good profit margin for custom merchandise?
Target at least 50% gross margin (2× production cost). For handmade or one-of-a-kind items, 65–75% is realistic. Mass-produced print-on-demand items often land at 30–40% after all fees. At 50% margin, a $25 product costs $12.50 to produce; at 30%, it costs $17.50. Lower margins require higher volume to cover business overhead.
Should I sell on Etsy or my own website?
Etsy has built-in traffic but charges 6.5% + payment fees plus $0.20 per listing. Your own Shopify or website has lower fees (~2.9% + $0.30 for Stripe) but requires building your own traffic. Most merchants start on Etsy for visibility, then build a direct website once they have repeat customers. This calculator compares all three to help you decide.
How do I estimate monthly profit from merchandise?
Enter your estimated monthly unit sales in the volume column. The calculator multiplies profit per unit by volume to show projected monthly profit. Start conservatively — new Etsy shops often sell 5–20 items per month initially. After 6 months with good SEO and reviews, 50–200 monthly sales is achievable in popular niches.
Is my data saved or sent anywhere?
No. All calculations run entirely in your browser. Nothing is sent to any server.