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Ecommerce Profit Calculator

A sale is not profit until every cost is subtracted: the product, shipping and packaging, the marketplace cut, the payment processor, the ad that won the order, and the returns that come back. Enter your per-order numbers and this calculator shows your true profit per order, your margin, your monthly profit, and the lowest price you can charge without losing money.

Selling price per order ($)

Product cost per order ($)

Shipping cost per order ($)

Packaging / other cost per order ($)

Marketplace / platform fee (%)

Payment processing fee (%)

Payment fee, fixed per order ($)

Ad cost per order ($)

Return rate (%)

Return shipping cost per return ($)

Orders per month

Fixed monthly costs ($, e.g. store plan)

Returns are modeled simply: a returned order is refunded in full, so it earns no profit, and you pay the return shipping. The model assumes the returned item itself is resold at no further loss — if returned stock is unsellable, add its product cost to the return shipping figure. Estimates only: tax treatment, refunds of platform fees on returns, and bulk discounts all vary by marketplace.

How it works

Profit per order = selling price − product cost − shipping − packaging − platform fee − payment fee − ad cost, where platform fee = price × platform % and payment fee = price × payment % + fixed fee. Margin = profit ÷ price; markup = profit ÷ total cost — margin and markup are different numbers for the same sale, do not mix them up. Monthly profit = profit per order × completed orders − return shipping on returned orders − fixed monthly costs. Break-even price solves profit = 0 for the price: because the percentage fees grow with price, it is (product + shipping + packaging + fixed payment fee + ad cost) ÷ (1 − platform % − payment %), not just the sum of the costs. Worked example: a $29.99 item costing $8, with $4.50 shipping, $1 packaging, a 6.5% platform fee ($1.95), a 2.9% + $0.30 payment fee ($1.17) and $3 ad cost: total cost = $19.62, profit = $10.37 per order, margin = 34.58%. At 200 orders a month with a 5% return rate and $4 return shipping, completed orders = 190, return cost = $40, and monthly profit = 190 × $10.37 − $40 − $29 fixed = $1,901.48. Break-even price = $16.80 ÷ 0.906 = $18.54. Estimates only: marketplace fee rules, tax, and return handling differ by platform — check your own fee schedule before pricing.

Frequently asked questions

What is a good ecommerce profit margin?

It depends on the category: 10–20% net margin is common for competitive physical goods, while digital products and niche brands can exceed 40%. A margin under 10% leaves almost no room for returns, ad swings or fee changes, so treat it as fragile.

What is the difference between margin and markup?

Margin divides profit by the selling price; markup divides profit by the cost. A $10 profit on a $30 sale is a 33.3% margin but a 50% markup on its $20 cost. Marketplaces and accountants usually talk margin; suppliers usually talk markup.

Should ad cost go in profit per order?

Yes, if ads are how orders arrive. Leaving ad spend out flatters the margin and hides unprofitable campaigns — a product that looks profitable at $10.37 an order can be losing money once a $12 cost per acquisition is counted.

How do returns change the picture?

A returned order earns nothing and still costs return shipping, and on some marketplaces the platform fee is not refunded either. At a 5% return rate the example above loses $40 a month to return shipping alone; at 20% it would lose $160 before any restocking cost.

What is the break-even price for?

It is the floor: price below it and every order loses money even before fixed costs. Price at least a little above it, and use the orders-to-cover-fixed-costs figure to see how much volume your store plan actually needs.

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