FREE EXPORT PRICING GUIDE

How to calculate your export profit margin

International quotes can look profitable until packaging, freight, payment processing and foreign exchange are added. This simplified calculator models only the expenses you enter; it is not a tax, customs or contract valuation tool.

1. Choose your cost currency

If you pay suppliers in EUR, choose EUR. If your expenses are in KRW, choose KRW. Enter all cost values in the same selected currency. The proposed customer-facing unit sale price remains USD. Manually enter how many units of your cost currency equal 1 USD.

2. Calculate total cost

Total cost = Quantity × (manufacturing cost + packaging cost + other unit cost) + total freight/logistics + other fixed costs.

Include any costs you are responsible for under the actual delivery agreement. Duties, insurance, taxes, returns, foreign exchange spreads and other fees are not automatically inferred.

3. Calculate gross revenue and profit

Gross revenue (cost currency) = Quantity × USD unit price × Cost-currency-per-USD rate
Sales fees = Gross revenue × Fee %
Estimated profit = Gross revenue − Total cost − Sales fees
Net margin % = Estimated profit ÷ Gross revenue × 100

4. Reverse-calculate a target USD price

To protect a target margin on sales revenue, the calculator uses:

Target USD unit price = Total cost ÷ [Quantity × FX rate × (1 − fee rate − target margin rate)]

The denominator must be positive. Suggested unit prices are rounded up to the nearest US cent to avoid quoting below the calculated target.

Worked example (illustrative, not a live exchange rate)

InputExample
Quantity100 units
Cost currency / FX rateUSD / 1
Unit production + packaging + other$15
Total shipping + fixed costs$350
USD unit sales price$25
Fee on revenue2.5%
Total cost$1,850
Gross revenue$2,500
Estimated profit$587.50
Estimated margin23.5%

FAQ: does it handle Incoterms?

The quote includes an Incoterms label but does not automatically estimate cost responsibilities. Confirm your actual freight, insurance, import duty and sales terms. For binding commercial documents, ask a qualified professional.

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