For every order Klirry starts from what the customer paid and subtracts every real cost, in this order:
- What the customer paid. The order total, before anything is taken out.
- VAT. The tax you owe on the sale, for the country the order shipped to.
- Payment fees. What your card processor, Klarna or PayPal charged to take the payment.
- Shipping cost. What you actually paid to ship the order, by country, not what you charged the customer.
- Product cost. What the item cost you to buy or make, which accountants call cost of goods sold.
- Packaging. Boxes, mailers, tape and inserts.
- Everything else. A small catch-all rate for the odds and ends every order carries.
What is left is your real profit on that order. Refunds are subtracted the same way, so a partly refunded order shows its true, lower profit.
Fixed monthly costs such as rent and software are entered separately under Costs, as Fixed monthly costs.
Where the exact method lives
This page is the short version. The authoritative description, the one the product is held to, is the public methodology page. This article never restates the formula separately, so the two cannot disagree.
Why the number may say "estimate"
Until you have reviewed each cost section under Costs, the profit shows an estimate marker. Review each section and the marker goes away. See my numbers look wrong.