Pallet math

Liquidation Pallet Profit Calculator

Add up the pallet costs you enter, split them across the items you can sell, and see the average price needed to cover those costs after fees if all of them sell.

It is arithmetic on your own numbers. The calculator updates results in your browser and has no submit or save feature. This site uses page analytics and error monitoring.

Calculator

The pallet

What you paid for the pallet itself, before any fees.

The auction house's or liquidator's fee on top of the price, as a percentage. Leave it empty if there is none.

What you paid to get the pallet to you.

The dollar amount on your invoice, not a percentage.

The items

Every unit on the pallet, counting each one.

Items you can't list or sell at all. Their share of the cost is carried by the items you can sell.

Selling

What the marketplace keeps from each sale, as a percentage. Enter 0 if you sell with no fee. Needed for the break-even and profit figures.

What you plan to list your items at, on average. It's your asking price, not a prediction of what buyers will pay.

Your results

Enter the pallet price and the number of items to see your results.

Method

How the math works

Everything above is plain arithmetic on the numbers you enter. Here it is in words.

  1. Total landed cost. The pallet price, plus the buyer's premium (the pallet price times the premium percentage), plus freight, plus sales tax. It is what the pallet cost you by the time it was in your hands, as far as the costs you entered go.
  2. Sellable items. The number of items minus the unsellable items. Unsellable items still cost money, but they cannot be sold, so they are left out of the count and their share of the cost is carried by the items you can sell.
  3. Cost per sellable item. Total landed cost divided by sellable items. Every sellable item carries an equal share, whatever it is: a $5 item and a $200 item get the same share, so read this as an average, not as any one item's own cost.
  4. Break-even asking price. Cost per sellable item divided by one minus the platform fee (written as a decimal). When the platform charges a fee, the average selling price must exceed the cost per item to recover it. With no fee, it can equal the cost per item. With a 15% fee you divide by 0.85. The figure shown is rounded up to a whole cent when needed, rather than rounded to the nearest cent, so selling every sellable item at that price covers the cost.
  5. Profit if everything sells at your asking prices. Your average asking price times the sellable items, times one minus the platform fee, minus the total landed cost. It assumes every sellable item sells at your asking price. That is an assumption, not a forecast.

What it leaves out. Shipping you pay to send an item, packing supplies, payment-processing charges beyond the fee you enter, returns, storage, mileage and your time are not counted. Other amounts are rounded to the nearest cent when shown.

Example

A worked example

Hypothetical numbers, chosen to divide evenly. This is not a real pallet and not a typical result.

Pallet price
$500.00
Buyer's premium
10% ($50.00)
Freight
$100.00
Sales tax
$30.00
Items
40, of which 8 unsellable
Platform fee
15%
Average asking price
$30.00
  1. Total landed cost$500.00 + $50.00 + $100.00 + $30.00 = $680.00
  2. Sellable items40 − 8 = 32
  3. Cost per sellable item$680.00 ÷ 32 = $21.25
  4. Break-even asking price$21.25 ÷ (1 − 0.15) = $25.00
  5. Profit if everything sells at your asking prices$30.00 × 32 × (1 − 0.15) − $680.00 = $136.00

That $136.00 rests on every one of the 32 sellable items selling at $30.00. The next section shows how much that assumption can change the answer.

Before you rely on it

Why asking prices overstate what you'll get

The profit line uses your asking prices, and an asking price is where a negotiation starts, not where it ends. Four reasons the real total can come in lower:

  • Asking prices are advertised prices. The prices on live listings, yours included, are what sellers are asking. They are not what buyers ended up paying, and completed sales are a different set of numbers that can be lower.
  • Offers. Buyers make offers, and a sale can close below the asking price after a counter-offer or a markdown.
  • Returns. A buyer can send an item back. That takes the sale away, and you may not get every fee back.
  • Unsold items. Some items sit for a long time and some never sell. They still carry their share of the cost, and the profit line assumes none of them are left over.

How much this can matter: in the worked example, suppose only 24 of the 32 sellable items sell at $30.00 and the other 8 do not sell at all. The profit line becomes $30.00 × 24 × (1 − 0.15) − $680.00 = -$68.00, a loss. That split is an illustration of how sensitive the result is, not a typical or expected rate.

Use the break-even figure as an average selling-price check before you bid: if every sellable item sells at that price, their net proceeds cover the landed cost. Then look at what is on the pallet and decide whether that price is realistic for those items.

Once the pallet is yours

PalletPro is an inventory and profit tracking app for resellers, on iOS and Android.

Track this pallet in PalletPro