Free tool

eCommerce Profit Calculator

By Co-founder, Brand Builder University

Last updated

Net profit per order = selling price − every cost of selling that unit. Enter your price and costs to see your net margin, ROI, monthly profit, and how much you can spend on ads per order before you start losing money.

Per unit
Net profit per order
15.03
Net margin
37.6%
Total cost per order
24.96
Fees per order
1.46
ROI on product + shipping
111.3%
Markup on product cost
399.9%
Monthly revenue
11,997.00
Monthly profit
4,509.09
Max ad cost per order (break-even CPA)
24.03
Break-even ROAS
1.66

Works in any currency. Example fees are illustrative; use the rates for your own plan and payment provider.

How profit is calculated

  • Fees = price × fee % + fixed fee per order
  • Total cost = product cost + shipping & fulfilment + fees + marketing per order + other costs
  • Net profit = price − total cost; net margin = net profit ÷ price
  • ROI = net profit ÷ (product cost + shipping): the return on the money tied up in each unit
  • Break-even CPA = net profit + marketing per order: the most you can spend acquiring an order and still break even
  • Break-even ROAS = price ÷ break-even CPA

Worked example

A product sells for $39.99. It costs $8.00 to make, $5.50 to ship, and the payment provider charges 2.9% + $0.30 per order. Ads cost $9.00 per order and packaging adds $1.00.

  • Fees = 39.99 × 2.9% + 0.30 = $1.46
  • Total cost = $24.96, so net profit is $15.03 per order, a 37.6% net margin
  • At 300 orders a month that's $4,509.09 profit on $11,997.00 revenue
  • The seller could spend up to $24.03 on ads per order (a break-even ROAS of 1.66) before an order stops making money

Improving your numbers

The fastest levers are usually price, marketing cost per order and average order value. Selling a second item in the same order spreads fixed costs like shipping and payment fees across more revenue. Our guide to raising average order value covers the tactics that work.

Frequently asked questions

How do I calculate profit margin for an online store?

Subtract every cost of selling one unit from its price (product cost, shipping and fulfilment, payment or marketplace fees, marketing and other costs), then divide the result by the price. A $39.99 product with $24.96 of total costs makes $15.03 profit, a net margin of 37.6%.

What is the difference between margin and markup?

Margin is profit as a share of the selling price. Markup is how much the price exceeds the product cost, as a share of that cost. A product bought for $8 and sold for $39.99 has a 400% markup on product cost, but its net margin after all other costs is far lower.

What is break-even ROAS?

Break-even ROAS is the return on ad spend at which marketing uses up all of your profit. It equals the selling price divided by profit before marketing. If ads return less than that, each ad-driven order loses money.

Which fees should I include?

Include every per-order cost: payment processing (for example a percentage plus a fixed fee per transaction), marketplace or app fees, packaging, pick-and-pack and shipping you pay for. Check the current rates for your own plan and payment provider, because they vary by country and change over time.

Does this work for Amazon?

Yes. Enter the referral fee as the percentage fee and the FBA fulfilment fee as shipping and fulfilment. For ad spend, our ACOS calculator shows your break-even ACOS directly.