# How do we calculate profit from a product fundraiser?

Source: https://raised.nz/answers/how-to-calculate-product-fundraising-profit
Reviewed: 2026-11-13

Product fundraising profit is sales revenue less product costs and all other campaign expenses. Start with the margin per item, then subtract freight, packaging, refunds and any payment fees your group absorbs. Do not describe the full order total as the amount raised after costs.

## What is a useful worked calculation?

Illustration: 200 items sold for NZ$12 each produce NZ$2,400 in sales. At a supplier cost of NZ$8 each, the product bill is NZ$1,600 and the gross margin is NZ$800. If freight and packaging cost NZ$100, NZ$700 remains before payment fees or any other expenses.

The example does not assume a current supplier price or fee rate. Use your written quote and the campaign's actual payment settings. Account for tax according to the organiser's circumstances with its accounts adviser.



## How many items do you need to sell?

Divide the amount you need to cover by the contribution each item makes after variable costs. If you need NZ$500 plus NZ$100 in fixed costs and each item contributes NZ$4, you need 150 items before other fees. If the contribution falls, the required quantity rises.

For several products, use the expected mix of sales. A high-margin item does not determine the return if most families buy a lower-margin option.



## How do you report the final result?

Compare actual payments and refunds with the supplier invoice, not only the campaign headline total. Keep pending bank transfers separate from money received.

1. Record paid sales and any refunds.
2. Deduct supplier invoices and fulfilment costs.
3. Include payment fees borne by the group.
4. Keep donated goods or sponsorship separately identifiable.
5. Publish gross sales and net proceeds with clear labels.

## Related guidance

- [Check regional payment fees](https://raised.nz/pricing)
- [Reconcile campaign payments](https://raised.nz/answers/how-to-reconcile-fundraiser-payments)
- [See a case study that labels order value](https://raised.nz/case-studies/hokitika-gymnastics-pie-fundraiser)

[Start your fundraiser](https://raised.nz/start/setup?kind=product&source=answers/how-to-calculate-product-fundraising-profit)