Measure the true profit margin of a digital product after platform fees, payment fees, affiliate commissions, refunds, delivery costs, and ad spend. Use it to decide whether pricing, refunds, or acquisition costs need improvement.
A high margin means each sale leaves enough profit after variable costs to fund growth. A low margin means discounts, refunds, or paid ads can quickly make the product unprofitable.
Digital courses often target 45–70% margin, templates 55–80%, software licenses 60–85%, and ebooks 65–90%.
If a $99 product has $18 ad cost, 18% combined fees, 5% refunds, and $5 variable costs, net profit is about $58 and margin is roughly 59%.
A strong digital product margin is often above 50%, but the target depends on product type, refund rate, platform fees, and paid acquisition cost.
Online course sellers often aim for 45–70% margin after fees, refunds, software, affiliates, and advertising costs.
Yes. Platform, payment, affiliate, and refund costs should all be included because they reduce the actual profit from each sale.
Refunds reduce revenue and can add processing costs, so even a small refund rate can materially lower margin when ad cost is high.
Yes. For paid campaigns, ad cost per sale is essential for understanding whether the product can scale profitably.
| Metric | Meaning |
|---|---|
| Health Score | 0–100 score based on margin, cost pressure, risk, or efficiency. |
| Status | Excellent, Good, Average, or Needs Improvement. |
| Recommendation | Automatic next-step guidance based on the result. |
| Benchmark | Industry-style range for practical comparison. |