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Compare the sales required at different price points. The rest of your costs stay the same.
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Free business tool
Digital Product Pricing & Profit Calculator
See what you actually keep from every sale, how many sales it takes to break even, and whether your current price can reach your monthly profit goal.
Free to use
No email required
Instant results
Built for digital products
Where the money goes
Your monthly estimate, separated into revenue, fees, expenses, and net profit.
Gross monthly revenue$999.00
Platform & transaction fees−$79.95
Advertising−$200.00
Other per-sale costs−$50.00
Monthly fixed expenses−$50.00
Estimated monthly profit$619.05
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Your Numbers Are Only Half the Equation
Building Passive Income With Digital Products
Knowing the math tells you what the product needs to produce. The next step is building, positioning, and promoting something people have a reason to buy.
Understand your results
How to Calculate Digital Product Profit
Digital product profit is not the same as sales revenue. Start with the money collected from a sale, then subtract every cost connected to that sale and the monthly expenses required to keep the business running.
Monthly profit = (price − per-sale fees and costs) × sales − monthly fixed expenses
This calculator separates variable costs—fees, advertising, affiliate payouts, or delivery costs that happen with each sale—from fixed expenses such as software and subscriptions. That distinction gives you a clearer view of what another sale is worth and how many sales it takes to break even.
Digital products can still carry platform fees, payment-processing fees, advertising costs, affiliate commissions, software, subscriptions, outsourcing, design, labor, and taxes. Version 1 does not calculate taxes.
How Much Should You Charge for a Digital Product?
There is no universal correct price. A useful price must account for your costs, the value to the customer, your market, and the number of buyers you can realistically reach. The goal-supporting price above answers a narrower but important question: at your expected sales volume, what price would mathematically support your profit goal?
Use that number as a decision point—not a command. Compare it with the value of the product and the prices your intended customers already accept.
Revenue Versus Profit
Revenue is the total collected before expenses. Profit is what remains after selling costs and monthly expenses. A business can produce strong revenue and still keep very little of it. Watching both numbers helps you avoid mistaking activity for actual earnings.
How Many Digital Products Do You Need to Sell?
The answer depends on what remains from each sale. If a product contributes $5 toward the goal, reaching $1,000 plus expenses requires far more buyers than a product contributing $20. The calculator rounds required sales up because a fraction of a sale cannot cover the remaining gap.
Why a Cheaper Price Does Not Always Make the Goal Easier
A lower price may feel easier to sell, but it also increases the volume required to reach the same profit target. A higher price can reduce the required sales volume, but only when the offer delivers enough value for the intended buyer. The scenario table lets you see that tradeoff before changing your price.
Frequently asked questions
Digital product pricing questions
How do I calculate profit on a digital product?
Subtract platform fees, transaction fees, advertising, and other per-sale costs from the product price. Multiply what remains by monthly sales, then subtract monthly fixed expenses.
How much should I charge for a digital product?
Start with the price needed to cover your costs and support your profit goal at a realistic sales volume. Then compare that number with the value delivered, your positioning, and what your intended buyers are willing to pay.
How many sales do I need to make $1,000 per month?
Enter $1,000 as your desired monthly profit. The answer depends on your product price, per-sale costs, monthly expenses, and the contribution remaining from each sale.
How do platform fees affect digital product profit?
Percentage fees take a larger dollar amount as your price increases, while fixed transaction fees reduce every sale by the same amount. Both reduce the contribution available to cover monthly expenses and profit.
What is break-even for a digital product?
Break-even is the point where the profit contribution from sales has covered the costs included in the calculation. This tool shows ongoing monthly break-even and, when startup costs are entered, first-month break-even.
Should advertising costs be included?
Yes. Choose cost per sale if you know your customer acquisition cost, or monthly ad budget if you plan advertising as a fixed monthly amount.
How do I know if my digital product is underpriced?
If the required sales volume is unrealistic or the price cannot cover per-sale costs, the current price does not support the goal you entered. That does not automatically mean the market will accept a higher price; it means the price, costs, sales volume, or goal must change.
What is the difference between revenue and profit?
Revenue is the total money collected from sales before expenses. Profit is what remains after fees, advertising, per-sale costs, and monthly fixed expenses are deducted.
Can I use this calculator for ebooks?
Yes. Enter the ebook price, expected sales, platform and processing fees, advertising, and any other relevant costs.
Can I use it for courses, templates, planners, printables, and downloads?
Yes. The same pricing and profit math applies as long as you enter the costs that apply to the product and selling platform.
Does the calculator include taxes?
No. Tax rules vary by location and business. Treat the result as a planning estimate and consult a qualified tax professional for guidance specific to your situation.