Ecommerce profit calculator.
See real margins after every cost: COGS, shipping, processing fees, marketing, returns, and the rest. Updates live as you type — no submit button, just real numbers.
Why net margin is the only number that matters.
An online store with $100k/month revenue and a 5% net margin keeps less than a freelancer billing 20 hours a week. Revenue is vanity; net is reality.
- 01Revenue lies.Gross sales make the dashboard look great. Net profit tells you whether the business is real.
- 02Hidden costs eat margin.Returns (5–15%), payment processing (2.9–6.5%), software ($100–500/mo) — easy to skip, painful at year-end.
- 03Most stores keep 10–20%.50–60% gross margin is normal; net is much lower. Knowing the gap is step one.
- 04Pick platforms with eyes open.Stripe vs Shopify Payments vs PayPal can swing fees by 1–2% — at scale, that's rent money.
Enter your numbers.
The result updates as you type — no submit button. Tweak inputs and watch margins move in real time.
Total gross sales for the month.
AOV: $50.00
Materials, manufacturing, wholesale cost as % of revenue.
Total monthly cost of packaging materials.
Total monthly carrier costs.
Shopify Payments: 2.9% + $0.3 per transaction.
Industry average 5–15% depending on category.
Total monthly ad spend, content, agency fees.
Email, analytics, reviews, apps — the silent killers.
Your profit picture.
Excellent margin (32.6%). Strong margins, sustainable and scalable
Net profit
$3,261.00
32.6% net margin on $10,000.00 revenue
Where your money goes.
Sorted by size — the top of the list is where to look first if you want to lift margins.
Platform fees compared at your volume.
Same revenue and order count, different processors. Switching can swing your bill by hundreds of dollars a month.
Annual projection.
Annual net profit
$39,132.00
Net profit projected over 12 months at current performance
Ecommerce margins by industry.
The gap between gross and net is the operational cost of running the business. SaaS-style margins don't exist in physical goods.
How to improve your margins.
- 01Negotiate COGS.A 5% supplier discount drops straight to the bottom line. Worth a quarterly conversation.
- 02Reduce returns.Better photos, sizing guides, and descriptions prevent the most expensive kind of sale.
- 03Optimise shipping.Negotiate carrier rates at volume, or pass costs to customers above a threshold (free shipping above $X).
- 04Compare platforms regularly.1–2% in processing fees adds up. Re-run the comparison every 6 months.
- 05Watch CAC vs LTV.Marketing spend should produce profitable customers — not just transactions.
Frequently asked questions.
How do you calculate ecommerce profit margin?+
Net profit margin = ((Revenue - All Costs) / Revenue) x 100. Costs include COGS, shipping, payment processing fees, marketing, software subscriptions, returns, and packaging. A healthy ecommerce net margin is typically 10-20%.
What is a good profit margin for an online store?+
A good net profit margin for ecommerce is 10-20%. Gross margins vary by industry: fashion (50-65%), beauty (60-80%), electronics (25-40%). Digital products have the highest margins at 80-95% since there are no physical costs.
How do payment processing fees affect profit?+
Payment processing fees typically take 2.9% + $0.30 per transaction (Stripe/Shopify). On a $50 average order, that is $1.75 per sale or 3.5%. For high-volume stores, negotiating lower rates or using platforms with volume discounts can save thousands per year.
Should I include marketing spend in profit calculations?+
Yes. Marketing is a real cost of acquiring customers. Include paid ads, influencer costs, email tools, and content creation. Your Customer Acquisition Cost (CAC) should be significantly less than Customer Lifetime Value (LTV) for sustainable growth.
How do returns affect ecommerce profitability?+
Returns typically run 5-15% in ecommerce (up to 30% in fashion). Each return costs shipping both ways plus restocking. A 10% return rate on $10,000 revenue at $8 per return costs $800, cutting net margin by 8 percentage points.
What costs do new ecommerce sellers often forget?+
Commonly forgotten costs include: payment processing fees, return shipping, packaging materials, platform monthly fees, software subscriptions (email, analytics, reviews), chargebacks, product photography, and inventory storage.
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Margins this thin? Time to optimise the storefront.
Most ecommerce margin problems trace back to checkout, conversion, and platform sprawl. I build custom commerce solutions and Shopify integrations that lift profit per order — checkout optimisation, fulfilment workflows, and platform consolidation.
Email meBuilt by Taro Schenker — full-stack developer who works with startups and local businesses.