Skip to main content

E-commerce Profit Calculator

See your true profit after product cost, shipping, marketplace fees, payment processing, advertising, and returns — with every formula shown.

Ecommerce profit is your net profit: revenue minus every modeled cost of making the sale — product cost, shipping, fees, advertising, and estimated refunds. Net profit margin expresses that same profit as a percentage of revenue (net profit ÷ revenue × 100). There's no single 'good' margin to target — it varies widely by product, category, and business model.

Last reviewed August 11, 2026

Quick-start examples

These three scenarios fill in every field below with made-up numbers so you can see how the calculator works. They are illustrative examples only — not real marketplace fees, official rates, or verified benchmarks. Every field stays editable after you pick one.

Sales

If 10 customers ordered 2 units each, that's 20 units sold and 10 orders.

Product Cost
Fulfillment Costs
Selling & Payment Fees
Advertising

Enter the total advertising spend attributable to this product over the same period as the sales figures above.

Returns

Enter the estimated percentage of product revenue expected to be refunded. For example, if about 5% of your product sales value is typically refunded, enter 5.

Other Costs

Costs that don't change with sales volume, such as software subscriptions. Use the same time period as your sales figures above.

Fill in the required fields and press Calculate to see your results here.

How to use this calculator

  1. 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.
  2. 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%.
  3. Pay attention to Units Sold vs. Number of Orders — they're usually not the same number. See the help text on that field.
  4. Press Calculate.
  5. 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 Expenses

Platform 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.

What is ecommerce profit margin?

Net profit margin is your net profit expressed as a percentage of revenue: net profit ÷ revenue × 100. It answers 'of every dollar of revenue, how much did I actually keep after every cost?' — a higher margin means more of each sales dollar became profit, but what counts as a strong margin varies a lot by product type and business model, so there's no universal target to aim for.

Once you know your real profit, use the Product Pricing Calculator to find a selling price that hits a higher target margin, or the Break-Even ROAS Calculator to see how much you can afford to spend on advertising before that profit disappears. Selling on Etsy specifically? Use the Etsy Fee & Profit Calculator to see your real profit after Etsy's own listing, transaction, payment processing, and Offsite Ads fees. Sell on eBay instead? The eBay Fee & Profit Calculator breaks down eBay's category-dependent Final Value Fee alongside your other costs. Fulfilling orders with Amazon FBA? The Amazon FBA Profit & Fee Calculator covers Amazon's referral fee, FBA fulfillment fee, and fuel surcharge. Using an outsourced fulfillment provider? The 3PL Fulfillment Cost Calculator turns your actual 3PL quote into a monthly fulfillment cost, cost per order, and cost per unit. If you sell through Shopify, use the Shopify Profit & Fee Calculator to model Shopify Payments or third-party processing fees on an individual order. Before you enter a shipping cost above, the Dimensional Weight Calculator can help you estimate the billable weight a carrier will actually charge for. Selling on TikTok Shop? The TikTok Shop Fee & Profit Calculator estimates the referral fee, creator/affiliate commission, campaign fees, and order-level profit.

Related calculators

AdvertisingAvailable now

Break-Even ROAS Calculator

Find the minimum return on ad spend you need to stay profitable.

Open calculator
PricingAvailable now

Product Pricing Calculator

Set a price that covers your costs and hits your target margin.

Open calculator
Ecommerce ProfitAvailable now

Etsy Fee & Profit Calculator

See your real Etsy profit after listing, transaction, payment processing, and Offsite Ads fees.

Open calculator
Ecommerce ProfitAvailable now

eBay Fee & Profit Calculator

See your real eBay profit after Final Value Fees, insertion fees, and Promoted Listings.

Open calculator
Ecommerce ProfitAvailable now

Amazon FBA Profit & Fee Calculator

See your real Amazon FBA profit after the referral fee, FBA fulfillment fee, and fuel surcharge.

Open calculator
Ecommerce ProfitAvailable now

3PL Fulfillment Cost Calculator

Turn your actual 3PL quote into a true monthly fulfillment cost, cost per order, and cost per unit.

Open calculator
Ecommerce ProfitAvailable now

Shopify Profit & Fee Calculator

See your real Shopify profit after Shopify Payments or third-party processing fees.

Open calculator
Ecommerce ProfitAvailable now

Dimensional Weight Calculator

Calculate DIM weight and billable weight for UPS, FedEx, USPS, or a custom divisor.

Open calculator
Ecommerce ProfitAvailable now

TikTok Shop Fee & Profit Calculator

See your real TikTok Shop profit after the referral fee, creator/affiliate commission, and your own costs.

Open calculator