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Liquidation pallet profit calculator

Work out whether a liquidation pallet pays before you buy it. Enter what the pallet costs, how many units it holds, how many you expect to sell and at what price, and the calculator shows profit, ROI, the break-even resale price and the most you can pay to hit your target. Everything runs in your browser.

Calculator

The prefilled numbers are a worked example, not typical results. Replace them with the lot you are looking at and your own selling history.

What the pallet costs you
Buyer fees, sales tax you cannot reclaim, pickup or prep costs.
What you expect to sell
Units that will never earn money: damaged, missing, or refunded and not resellable.
Share of the sellable units you expect to sell in your selling window.
Selling costs
Packaging, postage you pay, listing fees charged per item.
Used to work out the most you can pay for this pallet.

What this calculator works out

A liquidation pallet only makes money if the units you actually sell, at the price you actually get, cover what you paid, the freight and the fees. The headline number on a listing (units, retail value) leaves out the damaged units, the units that never sell and the cut the marketplace takes. This calculator puts those back in.

It gives four answers: the profit you can expect, the return on what you spend, the average resale price you need just to break even, and the most you can pay for the pallet and still hit your target ROI. The last one is the number to bid with.

The formula

  1. Total cost = pallet price + freight + purchase fees and other costs.
  2. Units sold = units × (1 − returns and damage %) × sell-through %.
  3. Revenue = units sold × average resale price.
  4. Net proceeds = revenue − (revenue × fee %) − (units sold × selling cost per unit).
  5. Profit = net proceeds − total cost. ROI = profit ÷ total cost.
  6. Break-even resale price = (total cost + units sold × selling cost per unit) ÷ (units sold × (1 − fee %)).
  7. Units to break even = total cost ÷ (average resale price × (1 − fee %) − selling cost per unit).
  8. Most you can pay = net proceeds ÷ (1 + target ROI) − freight − other costs.

Worked example

A pallet of 120 units costs $600 plus $150 freight. You expect 15% of the units to be damaged or come back, and to sell 80% of the rest at an average of $18. The marketplace keeps 13% and you spend $2 per unit on packaging.

  • Total cost: $600 + $150 = $750
  • Units sold: 120 × 0.85 × 0.80 = 81.6
  • Revenue: 81.6 × $18 = $1,468.80
  • Fees: 13% of $1,468.80 = $190.94; selling costs: 81.6 × $2 = $163.20
  • Net proceeds: $1,114.66

Profit is $364.66, an ROI of 48.6%. The break-even resale price is $12.87 per unit, and you need to sell 55 units at $18 to break even. To hit a 50% ROI you could pay up to $593.10 for the pallet, so at $600 this lot is just short of that target.

Before you bid

  • Run a second, pessimistic case with more damage and lower sell-through. If that case loses more than you can afford, lower your bid.
  • Base the resale price on what the items have actually sold for, not on the retail value printed on the manifest.
  • Count freight properly. On a cheap pallet it can be a large part of the total cost.
  • Leave out your own time only if you have decided not to pay yourself. Otherwise add it as a selling cost per unit.

Read are returns pallets worth it and manifested vs unmanifested lots for what to check in a listing.

Frequently asked questions

How do I calculate profit on a liquidation pallet?

Take the units you expect to sell (units on the pallet, less damaged and returned units, times your sell-through rate) and multiply by the average resale price. Subtract marketplace fees and your selling costs per unit, then subtract what the pallet cost you including freight. Divide that profit by the total cost to get ROI.

What is a good ROI on a liquidation pallet?

There is no standard figure. Set a target that pays for your time, storage and the risk that the pallet is worse than its description, then use the maximum pallet price result to see what you can pay and still hit it.

How do I estimate sell-through and damage on an unmanifested pallet?

Use your own results from the same source and category if you have them. If you do not, run the calculator twice: once with the numbers you expect and once with a pessimistic case. If the pessimistic case loses money you cannot afford to lose, lower your bid.

What is the break-even resale price?

It is the average price per unit sold at which the pallet makes exactly zero profit after fees and selling costs, with your sell-through and damage assumptions held fixed. If you cannot realistically sell at that average, the pallet loses money.

What should I enter for marketplace fees?

Enter the total percentage the selling platform keeps from each sale, including payment processing if it is charged separately. Fees change, so check each platform's current fee page. Put fixed per-item costs such as packaging or postage you pay in the selling cost per unit field instead.

Does Forthclear charge buyers a fee?

No. Buyers pay no Forthclear fee, so leave the purchase fees field at zero for a lot bought on Forthclear. Sellers pay Forthclear 5% of the item subtotal when an item sells.

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Put real lots through the calculator

Forthclear is a B2B marketplace for surplus and overstock lots. Buyers pay no Forthclear fee, so the purchase fees line stays at zero for lots bought there.

Browse lots on Forthclear

Selling surplus stock instead? List your lots for free. Sellers pay 5% of the item subtotal only when an item sells.