E-commerce Profit Calculator
See your true profit after product cost, shipping, marketplace fees, payment processing, advertising, and returns — with every formula shown.
Last reviewed August 11, 2026
How to use this calculator
- Gather your numbers for one product (or a group of similar orders) over a single time period — for example, one month of sales for one SKU.
- Fill in the four required fields. Every other field can stay blank if it doesn't apply to you — blank is treated as $0 or 0%.
- Pay attention to Units Sold vs. Number of Orders — they're usually not the same number. See the help text on that field.
- Press Calculate.
- Check the summary for the headline numbers, then the detailed breakdown to see exactly how each figure was built.
How the calculation works
Product Revenue = Price per Unit x Units Sold
Shipping Revenue = Shipping Charged per Order x Orders
Gross Revenue = Product Revenue + Shipping Revenue
Estimated Refunded Revenue = Refund Rate x Product Revenue
Net Revenue = Gross Revenue - Estimated Refunded Revenue
Total Expenses = Cost of Goods Sold + Shipping Expenses + Platform Fees
+ Payment Processing Fees + Advertising Expenses
+ Packaging Expenses + Other Variable Expenses
+ Other Fixed Expenses
Net Profit = Net Revenue - Total ExpensesPlatform fees and payment processing fees are both calculated on your full revenue (product price plus any shipping you charge the customer) — this matches how most marketplaces currently calculate their commission, but it's this calculator's assumption, not a universal rule. Enter the percentage that matches your own platform and payment provider.
Assumptions and Limitations
- Percentage selling and payment fees are calculated on Product Revenue + Customer-Paid Shipping Revenue — this is this calculator's assumption, not a universal marketplace rule. Enter the percentage that matches your own platform and payment provider.
- For simplicity, this version assumes customer-paid shipping is not refunded.
- Fee treatment after refunds varies by platform and payment processor. This calculator conservatively assumes fees are not recovered.
- Returned inventory recovery is not modeled — product cost is treated as fully spent even on refunded units.
- Return shipping costs are not modeled.
- Sales tax is not modeled. Marketplace and payment-provider rules involving sales tax can vary.
- This is an estimate of aggregate profitability, not a substitute for your accounting records.
- Results can differ slightly from transaction-by-transaction processor statements due to individual transaction rounding.
- This calculator is for general informational purposes only and is not tax, financial, legal, or investment advice.
See our methodology for how we build, document, and review every calculator's formulas.
Worked example
A seller sells 100 units across 90 orders at $35.00 per unit, with a $9.00 product cost, $4.99 shipping charged to customers (actual shipping cost $6.50), a 15% platform fee, 2.9% + $0.30 payment processing, $400 in advertising, $0.75 packaging per order, a 5% refund rate, and $50 in other fixed costs.
- Product Revenue
- $3,500.00
- Shipping Revenue
- $449.10
- Gross Revenue
- $3,949.10
- Estimated Refunded Revenue
- $175.00
- Net Revenue
- $3,774.10
- Total Expenses
- $2,736.39
- Net Profit
- $1,037.71
- Profit per Order
- $11.53
- Net Profit Margin
- 27.50%
- Return on Cost
- 37.92%
Frequently asked questions
What is ecommerce profit?
Ecommerce profit is what you actually keep after every cost of selling a product — not just the revenue you collect. It accounts for product cost, shipping, marketplace and payment processing fees, advertising, packaging, and other expenses, minus estimated refunds.
What costs should I include?
Include every cost tied to selling this product over the period you're measuring: what you paid for it, what you spend on shipping and packaging, any marketplace or payment processing fees, advertising spend for this product, and any other recurring costs from the same period.
Should I include advertising spend?
Yes — enter the total advertising spend attributable to this product over the same period as your other numbers. Leaving it out will make your profit look better than it really is.
What is the difference between units sold and number of orders?
Units Sold is the total number of individual items you sold. Number of Orders is how many separate purchases those units came from. If 10 customers each bought 2 units, that's 20 units sold across 10 orders. This matters because costs like shipping, packaging, and fixed fees are usually charged once per order, not once per unit.
How are refunds handled?
The Estimated Refund Rate reduces your product revenue by the percentage you expect to be refunded. Customer-paid shipping is assumed not to be refunded, and costs — product, shipping, fees, advertising — are treated as fully spent even on refunded orders, since fee and cost recovery vary by platform and aren't modeled here.
Does this calculator include sales tax?
No. Sales tax isn't modeled in this calculator, since marketplace and payment-provider rules involving tax vary. This tool doesn't provide tax, legal, or financial advice.
Why might my payment processor statement differ by a few cents?
This calculator works from average prices and total counts, not a list of individual transactions, so fees are calculated on aggregate totals rather than rounded order by order. The difference from your actual processor statement is typically a few cents at most.
What is Return on Cost?
Return on Cost is Net Profit divided by Total Expenses — it shows how much profit you made relative to what you spent. It's a profitability ratio, not an investment ROI calculation, since it doesn't account for time or capital invested.
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