Key takeaways
- Recast Incoterms before you treat goods cost as landed cost.
- Unsellable rate belongs in the buy, not after arrival.
- Copy the result or the shareable link.
- No income is promised.
The tool
Use the worksheet above after you have a matched quote, not instead of one.
The calculator is most useful when every input points to a record. Units and goods cost should match the RFQ or proforma. Freight and duty should come from the landed-cost sheet. Selling price should match the channel you named for the SKU. The unsellable rate should reflect the inspection rule you plan to use.
How to use it
- Enter units and the goods amount that belongs to your Incoterm.
- Add freight, insurance, and duty only if they are not already inside that goods amount.
- Enter the price you can actually sell, and the fee your channel takes.
- Enter a realistic unsellable rate. Zero is a story, not a plan.
- Copy the result into the order file.
Run the sheet once for the expected case and again with a less favorable selling price or unsellable rate. This is not a forecast range. It is a quick check on whether a small input change removes the profit you thought you had.
The method
total landed = (units × unit goods) + freight + insurance + duty
sellable = units × (1 − DOA rate)
revenue = sellable × selling price
estimated profit = revenue − (revenue × fee rate) − total landed
Read the meaning on profit margins. Recast unmatched quotes on the landed-cost calculator.
Read each line before the final number
Sellable quantity tells you how many units generate revenue in the worksheet. Total landed still includes every unit bought. Channel fees apply to the revenue that passes through the channel. Estimated profit is the remainder after those entries, before any costs the tool says it excludes.
If the result looks unexpectedly high, check for a missing freight line, a zero unsellable rate, or a selling price taken from a different version or condition. If it looks unexpectedly low, confirm that you did not add a cost already included in the quoted term. The Incoterms guide explains where that duplication usually starts.
Keep SKUs separate when the risk is different
Do not run one average line for a mixed carton when models have different selling prices or failure rates. Recast the order with the mixed-SKU guide, then calculate each meaningful group. A profitable fast model can hide slow or unusable units inside the average.
The same split applies to inventory state. Unused, used, and refurbished phones may share a model name, but their inspection work and unsellable assumptions differ. Put them on separate calculator runs, then combine the recorded results if you need one lot total.
Example
Fifty unused units at 180 goods, 400 freight, 40 insurance, selling at 230 with an 8 percent fee and a 4 percent unsellable rate. The worksheet will show sellable revenue on 48 units and profit divided by all 50.
Risk note
A pretty number does not verify the supplier or the version. Run verification and a sample first.
Related guides
Frequently asked questions
Can I use this as my official margin?
No. It ignores tax, time value of cash, and models you cannot sell except through the DOA percentage you typed.
Why is profit per unit lower than markup on sold phones?
Because failed units still sit in the landed total. That is the point.
Sources and methodology
- Incoterms 2020 — International Chamber of Commerce Accessed August 22, 2026.
- Know Your Incoterms — U.S. International Trade Administration Accessed August 22, 2026.
Update history
- — First published. Official sources on this page were accessed on this date unless a later note says otherwise.
- — Substantive revision of the buying fields or source notes.
Factual corrections after publication are listed on the corrections page. There is no separate reviewer identity on this desk. See the editorial policy.
About the author
Frank Dean
Frank Dean researches manufacturer, standards, and trade documents for PhoneBulk, then turns them into accept / clarify / reject buying guidance for resellers.
- Source-backed wholesale research
- Claim-level fact review
- Separation of official rule and trade practice