How to use the Ecommerce Profit Margin Calculator
- Enter the sale price and your product cost per order.
- Add your platform fee % (e.g. marketplace commission) and payment processing % + fixed fee.
- Include shipping, advertising per order, and any other cost.
- Read net profit per order, margin %, and monthly profit at your order volume.
Worked example
A $49 item costing $18, with 5% platform fee, 2.9% + $0.30 payment fee, $5 shipping, and $6 ad spend. Fees run about $4.65, leaving $5.35 net profit — an 10.9% margin. At 200 orders/month that is ~$1,070.
What is Ecommerce Profit Margin Calculator?
List price is not profit. Between the marketplace's commission, payment processor, shipping you absorb, and the ad that won to the click, a 50% gross markup can collapse to a single-digit net margin.
Net/order = Price − COGS − (Price × Platform%) − (Price × Pay% + Pay fixed) − Shipping − Ads − Other
Frequently asked questions
Should shipping be in here?
If you offer free shipping or eat the label cost, yes — it is a real expense. If the buyer pays it exactly, set it to 0.
What counts as 'other cost'?
Packaging, inserts, software subscriptions, and returns reserves. Small per-order costs add up fast at volume.
Why track margin, not just profit?
Margin tells you which products are worth promoting. A high-dollar low-margin item can tie up cash while a small high-margin item earns more per click.