Penny profit calculator
Absolute margin dollars per unit.
Formula
Penny profit = retail price − cost
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Penny profit
$31.49
margin dollars per unit
Worked example
A $49.99 retail against a $18.50 cost leaves $31.49 per unit. Rank a range by this figure and the order rarely matches the ranking by margin percentage, which is the whole reason to run both.
When you reach for this
The tiebreaker when two SKUs show the same margin percentage. A 40% margin on a $12 item and a $60 item are not the same business.
How to read the number
Multiply this by sales velocity before you cut a low-percentage SKU. Thin-margin items that turn quickly can out-earn the shelf space of a high-margin item nobody buys.
Metrics that travel with it
Questions operators ask about this metric
When does penny profit beat margin percentage?
Whenever you are choosing between SKUs for finite space or attention. Percentage ranks efficiency, dollars rank contribution, and rent gets paid in dollars.
Should I multiply this by velocity?
Yes, before you cut anything. A thin-margin item that turns weekly can out-earn a rich-margin item nobody buys, and penny profit alone will not show you that.
Which cost belongs in the subtraction?
The same landed cost you would use for margin. Using invoice cost inflates every unit in the range by exactly the freight you forgot to include.
Why do buyers ask for this number?
Because their shelf math runs in dollars per facing. Bringing a percentage to a space conversation answers a question the buyer did not ask.
Stop calculating this by hand
Every number on this page comes out of data you already have — orders, shipments, inventory, deductions. Endless keeps those in one source of truth instead of four exports, so the metric updates on its own and agents watch it for you.