How to use the ecommerce profit calculator
Enter the revenue from one order and the costs associated with fulfilling that order: product cost, marketplace or payment fees, shipping and fulfillment, and advertising cost per order. Use the same currency and enter each cost on a per-order basis. The calculator estimates profit and profit margin after those listed costs.
Ecommerce profit formula
Estimated profit = Order revenue − Product cost − Fees − Shipping and fulfillment − Advertising cost
The result is a contribution-style estimate based on the cost categories included. It is not necessarily the final net profit reported in your accounts because many business expenses may sit outside an individual order.
Example: profit on an online order
For a $100 order with $30 product cost, $8 in marketplace or payment fees, $7 shipping and fulfillment, and $15 advertising cost, the estimated profit is $40. The estimated margin is 40% of the order revenue. If any cost is missing or allocated differently, the result will change.
Costs sellers should remember
Depending on your business model, you may also need to account for returns and refunds, storage, packaging, duties, taxes, discounts, customer support, software, labor, and general overhead. Some costs are fixed or shared across many orders, so allocate them consistently if you want to estimate net profit. Avoid counting the same fee twice.
Per-order profit vs. business profit
Per-order estimates help compare products, channels, and pricing decisions. Overall business profit also depends on sales volume, fixed expenses, inventory losses, and other operating costs. You can use the profit margin calculator for a simple gross margin comparison or the break-even calculator to estimate the sales volume needed to cover fixed costs.
Frequently asked questions
Should advertising cost be entered per order?
Yes. Divide the relevant advertising spend by the number of orders attributed to that spend, using a consistent attribution method and period.
Does this calculate net profit?
Not automatically. It subtracts only the costs entered in the calculator. Add or separately allocate all relevant expenses before treating the result as net profit.
Related calculators
- Profit Margin Calculator – calculate gross margin from price and product cost.
- Break-Even Calculator – estimate units and revenue needed to cover fixed costs.
- ROAS Calculator – compare attributed ad revenue with ad spend.