Landed cost, not factory price
Include freight, duties, and packaging. Tariffs can change landed cost quickly, so rerun the model when your supplier or shipping route changes.
Margin modeling
Last updated: November 2026Published by Cydney Mar
A DTC product makes money when the revenue you keep after returns covers product cost, fulfillment, fees, and the cost of winning the order.
The Launch Direct margin calculator, published by Cydney Mar, estimates that number from six figures you supply. Cost and Margins is a core stage of Cydney's Concept-to-Reality Pathway: build for real profit and scalability, and learn to calculate costs properly before you order inventory or buy ads.
Subtract landed cost, fulfillment, fees, returns, and acquisition cost from your selling price, per order. If what is left is positive, each first order pays for itself. If it is negative, you are relying on repeat purchases to recover the loss.
Gross margin alone can mislead. A product can show a healthy gap between price and cost and still lose money once shipping, payment fees, refunds, and ad spend are counted. That is why direct sellers model the whole order, not just the unit.
Calculator
Fill in every field and press Calculate estimate. Results appear only when all figures are valid, and clear when you change an input.
Assumptions
This is an estimate for planning, not financial advice.
Getting the inputs right
Include freight, duties, and packaging. Tariffs can change landed cost quickly, so rerun the model when your supplier or shipping route changes.
Use your own test results where you have them. Published figures show acquisition costs have been rising, so an older number is likely too low.
Apparel and sized products tend to see more returns than simple goods. Use your category's reality rather than a hopeful guess.
Part of the direct to consumer launch guide from Launch Direct.
Cydney Mar brings 45+ years of experience and $300M+ in global product sales across retail, TV, and DTC to founders taking a product from idea to launch.