View source for Reaction Profitability Guide

{{#eveaccess:public}}

= Reaction Profitability Guide =
Reaction profitability in EVE Online is one of those areas that looks simple on the surface—“buy moon materials, react them, sell the output”—but becomes significantly more complex once you account for supply chains, market spreads, taxes, and logistics.

A reaction can be “profitable” on paper while still losing ISK in practice. The difference comes down to whether you are calculating '''real economic profit''' or just '''output price minus input price'''.

This guide breaks down how reaction profit actually works and how industrialists evaluate whether a reaction chain is worth running.
----

= What “Profitability” Actually Means in Reactions =
Reaction profitability is not just:<blockquote>Output value − Input value</blockquote>It is:<blockquote>Output value − (Inputs + Taxes + Fuel + Logistics + Opportunity Cost + Market friction)</blockquote>If you ignore any of these, your calculations will be incomplete.
----

= Step 1 – Calculate True Input Costs =
Your first step is determining the real cost of materials going into the reaction.

== Inputs include: ==

* Moon goo (raw materials)
* Gas (for biochemical chains)
* Purchased reaction materials (if mid-chain sourcing)
* Delivery costs of materials to structure

----

== Common mistake: ==
Using '''Jita sell price''' instead of buy orders.

This immediately:

* Inflates your costs
* Makes reactions look less profitable than they are
* Hides real margins

----

= Step 2 – Understand Output Value =
Output value depends heavily on:

* Jita sell price (benchmark)
* Regional demand
* Trade volume (liquidity)
* Competition in your chosen hub

----

== Important concept: ==
<blockquote>High price does NOT mean high profitability</blockquote>If an item:

* Sells slowly  it may be worse than a lower-value item with fast turnover.

----

= Step 3 – Include Structure Costs =
Every reaction job consumes infrastructure value.

== These include: ==

* Structure fuel costs
* Reaction service fees
* Corp/alliance taxes
* System upgrades (if applicable)

----

== Why this matters: ==
Even a small per-cycle fee becomes significant when:

* Running dozens of reactors
* Operating continuously
* Scaling into reaction farms

----

= Step 4 – Factor in Taxes and Market Fees =
Once your reaction is complete, you still lose ISK when selling.

== Fees include: ==

* Broker fees (listing orders)
* Sales tax (on completed sale)

----

== Impact: ==
Low-margin reactions can become:

* Break-even
* Or even loss-making

after fees are applied.
----

= Step 5 – Logistics Cost (Often Ignored) =
Reaction profitability is heavily influenced by movement of goods.

== Costs include: ==

* Hauling time
* Fuel (for jump freighters or structures)
* Gank risk (insurance-equivalent cost)
* Time delay between production and sale

----

== Key insight: ==
<blockquote>If logistics is inefficient, your reaction is less profitable even if prices are good.</blockquote>
----

= Step 6 – Opportunity Cost of Capital =
Every ISK used in reactions is locked until:

* Inputs are processed
* Outputs are sold

During that time, ISK cannot be used elsewhere.
----

== Example: ==

* 2B ISK locked in reaction chain
* Could instead be used for trading or flipping

That lost potential is part of your real cost.
----

= Step 7 – Calculate Per-Cycle Profit =
Now bring everything together.

== Formula: ==
<blockquote>Profit per cycle = Output value

− Input cost

− Taxes

− Structure fees

− Logistics cost

− Opportunity cost (optional but important)</blockquote>
----

== What this reveals: ==

* Some reactions that look profitable are not worth running
* Some low-margin reactions scale extremely well
* Profit is often volume-driven, not per-unit driven

----

= Step 8 – Evaluate ISK per Hour (Critical Metric) =
Reactions should always be evaluated as:<blockquote>ISK per hour per reactor</blockquote>Not:

* Profit per batch
* Profit per unit
* Total output value

----

== Why ISK/hour matters: ==
Because reactors:

* Run continuously
* Consume fixed time cycles
* Scale linearly

----

= Types of Reaction Profitability =
----

== 1. High-Margin / Low Volume ==

* Rare materials
* Strong price per unit
* Slower turnover

✔ Good for small farms

⚠ Sensitive to price drops
----

== 2. Low-Margin / High Volume ==

* Common moon materials
* Tight spreads
* Massive scaling potential

✔ Best for reaction farms

✔ Stable long-term income
----

== 3. Chain-Dependent Profit ==

* Composite reactions
* Multi-step production
* Higher complexity

✔ Highest potential profit

⚠ Highest risk and complexity
----

= Market Factors That Affect Profit =
----

== 1. Jita Price Compression ==
Jita often sets the “true” value of materials.
----

== 2. Regional Price Spreads ==
Some regions offer higher margins due to scarcity.
----

== 3. Supply Chain Disruptions ==
Wars or moon control changes can spike profits.
----

== 4. Overproduction ==
Too many players reacting the same material reduces margins.
----

= Common Profit-Killing Mistakes =
----

== 1. Using sell orders for inputs ==
Overinflates cost structure.
----

== 2. Ignoring tax impact ==
Margins disappear after sale.
----

== 3. Running unbalanced reaction chains ==
One bottleneck breaks entire profit flow.
----

== 4. Overbuilding infrastructure ==
Idle reactors = wasted ISK.
----

== 5. Not scaling correctly ==
Small setups hide inefficiencies that become losses at scale.
----

= How to Improve Reaction Profitability =
----

== 1. Use buy orders for inputs ==
Reduces baseline material cost.
----

== 2. Focus on high-turnover materials ==
Liquidity matters more than raw margin.
----

== 3. Minimise logistics distance ==
Shorter routes = higher effective profit.
----

== 4. Run continuous cycles ==
Idle time = lost ISK/hour.
----

== 5. Specialise reaction chains ==
Avoid spreading across too many markets.
----

= Advanced Profit Strategy: Chain Optimisation =
Instead of evaluating single reactions, evaluate full chains:

== Example chain: ==
Moon Goo → Simple Reaction → Composite Reaction → Market

Optimise:

* Input cost at first step
* Efficiency at every transformation stage
* Final market liquidity

----

= Final Summary =
Reaction profitability in EVE Online is determined by far more than simple input vs output pricing. True profit requires accounting for material sourcing costs, structure fees, taxes, logistics, and opportunity cost. Even seemingly profitable reactions can become inefficient once these hidden factors are included.

The most successful industrialists evaluate reactions not as isolated jobs, but as part of a continuous ISK-per-hour system, optimised for scale, stability, and market flow.

In EVE industry, profit is never just about what you produce—it is about how efficiently you convert time, materials, and infrastructure into ISK.