How to Calculate POD Profits (Step-by-Step)

Why Calculating POD Profits Matters

Many POD sellers only look at revenue or Shopify’s "total sales" number. But that’s not the same as profit. Profit is what’s left over after you subtract all the costs of running your business.

If you don’t calculate profit correctly, you may think you’re making money when you’re actually losing it. This is why profit tracking apps like PodVector exist—to make sure you see the real numbers, not just sales.

Step-by-Step Manual Profit Calculation

Here’s the basic formula for POD profit:

Profit = Total Sales – (Product Costs + Shipping Costs + Transaction Fees + Ad Spend + Refunds)

Let’s break it down step by step:

1. Total Sales — Start with your gross sales from Shopify or Etsy.
2. Product Costs — The base cost of the item from Printify or Printful.
3. Shipping Costs — What you pay for fulfillment and delivery.
4. Transaction Fees — Payment processing fees (Shopify, Stripe, PayPal, etc.).
5. Ad Spend — What you spend on Facebook, TikTok, or Google ads.
6. Refunds/Chargebacks — Sales lost due to customer returns or disputes.

Subtract all of these from your total sales to get profit.

Example Calculation

Let’s say you sold 100 t-shirts at $25 each. Here’s how the math works:

• Total Sales: $2,500
• Product Costs (100 × $10): $1,000
• Shipping Costs (100 × $4): $400
• Transaction Fees (3%): $75
• Ad Spend: $600
• Refunds: $100

Profit = $2,500 – ($1,000 + $400 + $75 + $600 + $100) = $325

Even though sales looked high, your true profit is much lower.

Problems With Manual Tracking

While you can track profits manually in spreadsheets, it comes with problems:

• Time-consuming — Updating every order by hand takes hours each week.
• Error-prone — Small mistakes in formulas can ruin your numbers.
• No real-time insights — You only see results after updating sheets.
• Hard to scale — As orders grow, manual tracking becomes unmanageable.

For a better solution, you can automate profit tracking. See our related article: Printify + Shopify Profit Tracking: Automating Your Analytics.

Automating POD Profit Tracking

Tools like PodVector connect directly to Shopify, Printify, Printful, and Meta Ads. This means costs and ad spend sync automatically—no manual updates needed.

PodVector shows you key metrics instantly:

• Total Sales (from Shopify)
• Net Sales (after discounts and refunds)
• Gross Profit (sales minus product + shipping costs)
• GPAM (Gross Profit After Marketing) — also called contribution margin
• Profit (after all costs including ads, fees, and refunds)

This lets you make smarter decisions, like when to increase ad spend or when to adjust product pricing.

Manual vs Automated: Side-by-Side

Final Verdict

You can calculate POD profits manually, but it takes time and energy. Automated tools like PodVector give you instant insights, save hours of work, and make sure your numbers are accurate.

If you want to grow with confidence, start using PodVector today.

FAQs

What’s the formula for POD profits?

Total Sales – (Product Costs + Shipping Costs + Fees + Ads + Refunds) = Profit

Can I calculate POD profits in Excel or Google Sheets?

Yes, but it takes time and errors are common. Automated tools like PodVector make it easier.

What costs do most POD sellers forget?

Shipping, transaction fees, and ad spend are the biggest hidden costs sellers often overlook.

What’s the difference between gross profit and profit?

Gross profit only subtracts product + shipping costs. Profit subtracts ads, fees, and refunds too.