Ecommerce & Marketplaces
Profit per unit and lot
The per-unit margin and the profit on the whole order.
The Formula
Profit/unit = Retail - Cost/unit; Lot profit = Profit/unit x Units
The per-unit margin and the profit on the whole order.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| R | Retail price | currency | Price the unit sells for. |
| C_u | Landed cost | currency | Total cost per unit. |
| n | Units purchased | count | Size of the order. |
What Each Symbol Means
Rcurrency
Retail price
Price the unit sells for.
C_ucurrency
Landed cost
Total cost per unit.
ncount
Units purchased
Size of the order.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate wholesale profit page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Wholesale Profit, filed under Business. Every number the guide produces comes from substituting into this one line.