Ecommerce Margin Calculator
Calculate ecommerce profit margin, markup, profit per order, and total profit based on selling price, product cost, fees, shipping, and ad spend.
Overview
An ecommerce margin calculator helps you see how much profit is left after direct selling costs. Enter your average selling price, product cost, payment or platform fee percentage, shipping and fulfillment cost, advertising cost per order, and monthly orders to estimate margin, markup, and monthly profit.
How it works
The calculator first works out percentage-based fees from your selling price. It then adds product cost, fees, shipping and fulfillment, and ad spend to estimate the total direct cost per order. Profit per order is the selling price minus total direct cost. Profit margin is profit divided by selling price, while markup is profit divided by total direct cost. Monthly revenue and monthly profit are based on your average orders per month.
How to use this calculator
- 1Enter your average selling price per order.
- 2Add your product cost for one order.
- 3Enter the combined percentage for payment processing and platform fees.
- 4Add average shipping, fulfillment, and advertising cost per order.
- 5Enter your expected monthly orders.
- 6Review your estimated profit margin, profit per order, and monthly profit.
Example Calculation
Selling price per order
$50
Product cost per order
$18
Payment and platform fees
5%
Shipping and fulfillment cost
$6
Advertising cost per order
$8
Monthly orders
200
Profit margin
31.0%
With a selling price of 50, product cost of 18, fees at 5%, shipping cost of 6, ad spend of 8, and 200 monthly orders, the estimated profit per order is 15.50, the profit margin is 31.0%, and the monthly profit is about 3100.
Frequently asked questions
What does this ecommerce margin calculator estimate?
It estimates profit per order, profit margin, markup, monthly revenue, and monthly profit using the costs you enter.
What is the difference between margin and markup?
Margin shows profit as a percentage of selling price, while markup shows profit as a percentage of cost.
Should I include shipping in my costs?
Yes, if shipping or fulfillment reduces your profit, it should be included as a direct cost per order.
Can I include ad spend in this calculator?
Yes, you can enter average advertising cost per order to see how customer acquisition affects profitability.
Does this calculator include refunds, returns, or taxes?
No, unless you build them into your cost inputs. The calculator only includes the direct costs entered.
Why is my margin lower than expected?
Margins often drop once fees, shipping, fulfillment, and ad spend are included alongside product cost.
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Assumptions and warnings
Assumptions
- This calculator uses average values per order and assumes your selling price and costs are consistent.
- Only the costs you enter are included, so overheads such as software, salaries, rent, returns, and taxes are excluded unless built into your inputs.
- Percentage fees are applied to the selling price only.
- Results are estimates and actual margins may vary by product mix, discounts, refunds, and shipping zones.
Warnings
- This calculator provides an estimate only and is not financial or accounting advice.
- Review your full business costs before making pricing or advertising decisions.