Ecommerce Profit Calculator
Find out what you really keep from each order. Add your product cost, shipping, payment and platform fees, advertising and returns to see net profit, net margin, markup and the ROAS you need to break even.
Loss per return = what you cannot recover, such as return shipping, unsellable stock or non-refunded fees. It is spread over all orders as return rate × loss.
Where each order's revenue goes
| Line item | Per order | % of revenue | Per month |
|---|
Profit at different ROAS levels
| ROAS | Ad spend per order | Net profit per order | Net margin | Monthly profit |
|---|
Estimates only, not financial or tax advice. Payment and platform fees change, so check your provider's current fees. Income tax, subscriptions and fixed overheads are not included unless you add them per order.
How to use the Ecommerce Profit Calculator
- Enter the selling price and any shipping you charge the customer.
- Add your costs: product cost (COGS), your shipping cost, packaging and anything else per order.
- Set the fees: payment processing (for example 2.9% + 0.30) and any platform or app percentage. Check your provider's current fees.
- Add advertising as ad spend per order or switch to ROAS, and set your return rate and loss per return.
- Press Calculate profit and read the net profit, margin, markup and break-even ROAS. Use the ROAS table to see how ad efficiency changes your profit.
Ecommerce profit formulas
- Revenue = selling price + shipping charged
- Fees = revenue × fee % + fixed fee (payment and platform)
- Returns cost per order = return rate × loss per return
- Profit before ads = revenue − COGS − shipping − packaging − other − fees − returns
- Net profit = profit before ads − ad spend per order (ad spend = revenue ÷ ROAS)
- Net margin = net profit ÷ revenue × 100
- Markup on COGS = (price − COGS) ÷ COGS × 100
- Break-even ROAS = revenue ÷ profit before ads
Worked example
A $39 product with $5 shipping charged gives $44 of revenue. Costs are $12 COGS, $6 shipping and $1 packaging. Card fees at 2.9% + $0.30 are $1.58. With a 5% return rate and $10 lost per return, returns cost $0.50 per order. Profit before ads is $22.92.
| Ad spend per order | ROAS | Net profit | Net margin |
|---|---|---|---|
| $0.00 | no ads | $22.92 | 52.1% |
| $8.00 | 5.50× | $14.92 | 33.9% |
| $14.67 | 3.00× | $8.26 | 18.8% |
| $22.92 | 1.92× (break-even) | $0.00 | 0.0% |
Ways to improve your margin
- Raise the average order value with bundles or a free-shipping threshold, so fixed costs per order are spread over more revenue.
- Negotiate product and shipping costs as volume grows. Small savings per unit add up fast.
- Track ROAS by campaign and pause campaigns below your break-even ROAS.
- Cut returns with clear sizing guides, photos and descriptions.
Frequently asked questions
How do I calculate ecommerce profit per order?
Start with revenue (price plus shipping charged). Subtract product cost, shipping, packaging, payment and platform fees, the expected cost of returns and advertising per order. What is left is net profit. Divide it by revenue for the net margin.
What is break-even ROAS?
It is the return on ad spend at which advertising uses up all of your profit, so you make zero. Break-even ROAS = revenue ÷ profit before ads. If your profit before ads is $22.92 on a $44 order, you need a ROAS of at least 1.92 to break even.
What is the difference between margin and markup?
Margin is profit as a share of the selling price. Markup is how much you add on top of cost, as a share of cost. A product that costs $12 and sells for $39 has a markup of 225% on COGS, but the net margin after all other costs is much lower.
What payment fees should I enter for Shopify or Stripe?
Card processing is often around 2.9% plus 30 cents in the US, but rates depend on your plan, country and payment method, and some platforms add a transaction fee if you use a third-party gateway. Check your provider's current fees and enter them in the two fee fields.
How are returns handled?
Enter your return rate and how much you lose on a returned order, such as return shipping and products you cannot resell. The calculator multiplies the two and spreads the cost over every order.
Is my data private?
Yes. Everything is calculated in your browser and your numbers are only saved on this device. This is an estimate, not financial or tax advice.