Flagship calculator

Ecommerce Profit Margin Calculator

Estimate per-order profit, margin, markup, break-even price, and cost waterfall from your selling price and costs.

Runs in your browser. No signup required. Estimates only. Fee assumptions last reviewed: 2026-06-06. View sources.

This calculator provides estimates based on your inputs and editable assumptions. It is not tax, legal, financial, accounting, or business advice.

Sale details

Scenario name

Selling price

Price the customer pays before sales tax.

Quantity

Shipping charged to customer

Buyer-paid shipping is revenue if paid to you.

Discount amount

Product and fulfillment costs

Product cost / COGS per unit

Materials, wholesale cost, or landed cost.

Labor cost per unit

Packaging per order

Packaging per unit

Shipping cost paid by seller

Other variable cost per order

Platform and payment fees

Platform fee percent

Generic editable marketplace or platform percentage.

Payment fee percent

Fixed transaction fee

Fee applies to

Tax collected as pass-through

Payment fee includes tax base

Ads, returns, and allowances

Ad cost / CAC per order

Return allowance mode

Return allowance value

Target margin percent

Fixed cost allocation

Monthly fixed costs

Apps, subscriptions, rent, tools, or monthly overhead.

Expected monthly orders

Allocated fixed cost per order: $1.00

Results

Thin margin

Estimated result only. Fees, taxes, payment rates, ad attribution, shipping costs, refunds, and platform rules can vary.

Cost waterfall

Scenario comparison

Formula and audit trail

Assumptions and sources

Currency: USD. Country scope: US-first. Payment default: 2.9% + $0.30 as an editable Stripe-like online card assumption. Platform fee default is editable and generic.

See the public rate/source ledger for source notes, limitations, and review dates.

Copy or export

Exports are user-initiated. Raw calculator inputs are not sent to analytics.

How the ecommerce profit margin calculator works

The calculator starts with gross order revenue: selling price times quantity, plus shipping charged to the customer, minus discounts. It then subtracts product cost, labor, packaging, seller-paid shipping, platform fees, payment fees, returns, ad cost, other variable costs, and optional allocated fixed costs.

Ecommerce profit margin formula

Estimated profit = gross order revenue - variable costs - allocated fixed costs. Net margin = estimated profit / gross order revenue. Markup on cost = estimated profit / total cost basis.

Common mistakes

Treating sale price minus product cost as real profit.
Forgetting shipping subsidies when free shipping is offered.
Ignoring fixed payment fees on low-ticket products.
Leaving out returns, refunds, ad cost, packaging, and monthly app costs.
Comparing markup and margin as if they mean the same thing.

Privacy note

Calculations run in your browser unless you choose to copy or export a result. Do not enter confidential customer data, platform credentials, passwords, or sensitive personal information.