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E-commerce Profit Margin Calculator | Estimate Net Profit per Order

Q: Is profit margin the same as markup?

No. Margin is profit divided by revenue — what you keep from each sale — while markup compares profit with the product cost. A 25% margin on a $40 sale is $10 of profit, while a 25% markup on a $30 cost is $7.50. The calculator shows both so you never confuse the two pricing metrics.

Find the true net profit per order for your e-commerce store — revenue minus product cost, shipping, marketplace fees, discounts, refunds, and ad spend. See the margin percentage and the per-order picture that shows whether each sale actually makes money.

Last updated: August 2026 · Free · No sign-up required

Estimate e-commerce revenue, fees, advertising, overhead, and net profit per order with transparent assumptions.

How this tool works

Revenue equals selling price multiplied by orders. Net profit subtracts product cost, shipping, payment fees, discounts, refunds, advertising, and allocated overhead.

Worked example

Enter representative inputs, review the result, and adjust assumptions to compare scenarios.

Frequently asked questions

What does an e-commerce profit calculator include?

It estimates revenue and subtracts product costs, shipping, fees, discounts, refunds, advertising, and allocated overhead.

Is profit margin the same as markup?

No. Margin is profit divided by revenue, while markup compares profit with product cost.

Should shipping be included?

Include the business cost of shipping and enter customer shipping revenue separately if you want a fuller model.

How should advertising be entered?

Enter the average advertising cost attributable to one order for the selected scenario.

Can this estimate taxes?

No. Tax treatment depends on jurisdiction and business structure and should be modeled separately.

Why can actual profit differ?

Returns, payment tiers, inventory costs, labor, taxes, and overhead allocation can change actual results.

Quick reference

Cost Line	Example	Notes
Product cost	$18.00	COGS incl. packaging
Shipping	$4.50	per order
Marketplace fee	15% of price	$4.50 on $30
Discount/refund buffer	$1.50	avg per order
Ad spend	$2.00	per order
Net profit	$–0.50	sale price $30

point_of_sale Full cost picture

Every deduction in one place.

trending_up Margin clarity

See % margin and break-even.

lightbulb Pro tip

Model best and worst case.

lightbulb Worked example

A $40 product with $12 cost, $5 shipping, 15% platform fee, and $6 ad spend per order.

Result: $11 net profit per order (27.5% margin).

Formula & methodology

Formula: Net Profit per Order = Sale Price − Product Cost − Shipping − Marketplace Fees − Discounts − Refunds − Ad Spend. Net Margin % = Net Profit ÷ Sale Price × 100.

How the e-commerce profit model works

The tool computes net profit per order = sale price − product cost − shipping − platform fees − payment fees − ad cost, then reports the margin as profit ÷ revenue. Marketplace fees vary by platform — a typical structure is 6.5–15% transaction fee plus a fixed payment fee — and offsite ad percentages are applied when you enter them.

Example: a $40 item with $12 cost, $5 shipping, 15% fee ($6), and $6 ad spend nets $11, a 27.5% margin.

Reading the result: the per-order view catches the hidden costs that erode e-commerce margins — ad spend and fees together often exceed the product margin. Use the breakdown to test price changes and fee scenarios before committing to a listing strategy.

Authoritative source: https://www.investopedia.com/terms/p/profitmargin.asp

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