Digital Product Profit Calculator
Calculate the profit and margin for digital products — ebooks, courses, templates, presets, and SaaS. Digital products have near-100% gross margin, but marketing and platform costs reduce net margin significantly.
Formula & Reference
| Variable | Formula | Units |
|---|---|---|
| Digital Product Profit Calculator | Profit = Revenue − Platform Fee − Ad Spend − Overhead | $/month |
Step-by-Step Examples
$97 course, 50 sales/month, 5% Teachable, $500 ads, $200 overhead.
- Revenue: $4,850
- Platform: $242.50 | Ads: $500 | Overhead: $200
- Profit: $3,907.50 (80.6%)
- Cost per sale: $19.40 on a $97 product
$29 template, 100 sales/month, 10% Gumroad, $0 ads (organic), $50 overhead.
- Revenue: $2,900
- Platform: $290 | Overhead: $50
- Profit: $2,560 (88.3%)
- Pure organic — no ad cost creates exceptional margin
$19 ebook, 200 sales/month, 5% platform, $2,000 ads, $100 overhead.
- Revenue: $3,800
- Platform: $190 | Ads: $2,000 | Overhead: $100
- Profit: $1,510 (39.7%)
- High ad spend on low-price product compresses margins significantly
Real-World Applications
Common Mistakes to Avoid
10% Gumroad fee or 5% Teachable fee on all revenue adds up quickly. On $100k/year revenue, that's $5,000–$10,000 in fees.
Digital products require customer support, content updates, platform maintenance, and affiliate management. Include time cost in your profitability calculation.
Running ads without a clear CPA (cost per acquisition) metric leads to spending more on ads than you earn on each sale.