Work out digital product profit, where near-zero marginal cost makes fees the dominant deduction.
Fees stack: a percentage commission, a percentage payment-processing charge and a flat per-transaction fee. Because the flat fee is constant, the effective fee rate is much higher on low-value orders than on high-value ones. On a low-value order the fixed fee alone can exceed the margin, which is why platform sellers need a minimum order value rather than a flat margin target.
Digital Product Profit
Net = sale price − commission − processing fee − fixed fee
Net = sale price − commission − processing fee − fixed fee Fees stack: a percentage commission, a percentage payment-processing charge and a flat per-transaction fee. Because the flat fee is constant, the effective fee rate is much higher on low-value orders than on high-value ones.
On a low-value order the fixed fee alone can exceed the margin, which is why platform sellers need a minimum order value rather than a flat margin target.
This calculator takes 5 inputs: Digital product price, Platform commission, Payment processing rate, Fixed fee per transaction, Your cost of goods. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.