Ecommerce Profit Calculator
Profit and margin on each online order after product cost, shipping, marketplace and payment fees, ad spend and returns, with the break-even price and a monthly total.
Result…
How it's calculated
Customer pays = price + shipping charged Costs = product + shipping + other + customer pays × (platform % + payment % + returns %) + fixed fees + ad cost Profit = customer pays − costs Break-even price = (product + shipping + other + fixed fees + ad cost) ÷ (1 − percentages) − shipping charged
An online order carries more costs than the product: the shipping you pay, packaging, the marketplace or store fee, the payment processor's percentage and fixed fee, the advertising it took to win the order, and an allowance for refunds and returns. This adds them up per order to show the real profit and margin, and solves for the lowest price that covers them all. Fees and how they are charged differ by platform, payment provider, country and plan, and sales tax or VAT is left out: enter prices without tax. Monthly subscription fees and overheads are better handled by a break-even calculator.
Your numbers, step by step
About the Ecommerce Profit calculator
This ecommerce profit calculator shows what you really keep from each online order. Start with the selling price and any shipping you charge, then take away the product cost, the shipping and packaging you pay, the marketplace or store fee, the payment processing fee (each as a percentage plus a fixed amount), the ad cost per order and an allowance for refunds and returns. You get the profit and margin per order, the lowest price that breaks even and the profit and revenue for a month of orders. It suits sellers on marketplaces, online stores and social shops, and anyone checking whether a product is worth selling. Fees differ by platform, payment provider, plan and country, so you enter your own, and the working shows each cost so you can see which one matters most.
How to use it
- Enter the “Selling price per order” and the “Shipping charged to the customer”.
- Enter the “Product cost per order”, the “Shipping cost you pay” and “Packaging and other costs per order”.
- Enter the platform and payment fees from your providers' price lists: a percentage and a fixed fee for each.
- Enter the “Ad cost per order” and a “Returns and refunds allowance”.
- Enter “Orders a month”, then read the profit per order, the margin and the break-even selling price.
Worked example
An item sells for 40 with 5 shipping charged, so the customer pays 45. Fees of 3% + 0.30 and 2.9% + 0.30 come to 3.26, and a 3% returns allowance is 1.35. With a product cost of 14, shipping of 6, packaging of 1 and ads of 6, costs total 31.61, so profit is 13.40 per order, a 29.77% margin. The break-even price is 25.30, and 300 orders a month make 4,018.50.
Updated
Questions people ask
How do I calculate profit on an online order?
Take what the customer pays, then subtract the product cost, shipping and packaging, every platform and payment fee, the ad cost per order and an allowance for returns. What is left is the profit per order.
How is the break-even price worked out?
Add the costs that do not change with price (product, shipping, packaging, fixed fees, ads), divide by 1 minus the percentage fees and returns allowance, and subtract any shipping you charge.
Are the fees charged on the price or on the price plus shipping?
It depends on the platform. This calculator applies percentage fees to what the customer pays, including shipping; if your platform charges on the price only, the real fee is a little lower. To see margin and markup on the product alone, try the profit margin calculator.
What is a common mistake when pricing products online?
Leaving out the ad cost per order and returns. A product can look profitable on cost and fees alone and still lose money once advertising and refunds are counted.
What does this calculator leave out?
Sales tax or VAT, monthly platform subscriptions, rent, wages and other overheads. Enter prices without tax, and use the break-even calculator for fixed monthly costs. An accountant can confirm how tax applies to your sales.