How to use the E-commerce Profit Calculator
- Enter the selling price and any shipping you charge the customer.
- Enter your product cost and what shipping costs you.
- Add platform commission, payment fees, ad cost per order and packaging.
- Press Calculate. Add orders per month for a monthly total.
Formula
Revenue = price + shipping charged
Profit = revenue − platform fee % × revenue − (payment % × revenue + fixed fee) − product cost − shipping cost − ad cost − packaging
Margin = profit ÷ revenue × 100
Examples
- Price 49.99, product 18, shipping 6.50, 10% platform fee, 2.9% + 0.30 payment fee, 5 ads, 1.20 packaging: profit ≈ 12.54 per order (25.1% margin), about 2,508 a month at 200 orders.
Frequently asked questions
How do I work out advertising cost per order?
Divide total ad spend for a period by the number of orders it produced. If you spent 1,000 on ads for 200 orders, that is 5 per order.
Should shipping I charge count as revenue?
Yes, because platforms usually charge their fees on the order total including shipping. Then count your actual postage as a cost.