E-Commerce Profit Calculator

Per-unit profit subtracts entered product, shipping and platform/payment costs from the sale price. Margin divides profit by sale price; markup divides profit by cost, so they are not interchangeable.

At a $25 sale price and $15 all-in cost, profit is $10. Margin is 40%, while markup is 66.67%. A fee based on the sale price must be deducted before computing profit.

Enter your actual fee schedule and shipping arrangement. Check whether fees apply to tax or shipping and account for fixed charges, refunds and advertising outside the basic model.

Platform presets can change and are illustrations, not verified current quotes. Tax, overhead, returns, currency conversion and subscriptions may not be included.

Enter the sale price for one unit, its product cost and the shipping cost you bear for that sale. Keep the figures on the same basis: comparing a single-unit selling price with the cost of an entire carton will not give a useful result. If the customer pays shipping separately, the form does not have a dedicated shipping-revenue box. Reconcile that arrangement outside the model so you know which costs and receipts your comparison includes.

Choose a platform preset only as an illustration of its built-in fee assumptions. Presets are not a live quote from the platform, and your category, country, subscription or promotional arrangement may have different charges. The custom option accepts a percentage of the sale price; it does not provide separate boxes for every fixed charge or a complicated fee schedule. Keep a worksheet beside the result for costs that cannot be represented directly.

For a $30 sale, enter a $10 product cost, $5 shipping cost and a custom fee of 10%. The modeled fee is $3, leaving $12 after those three deductions. Divide $12 by the $30 sale price and the margin is 40%. If you change only shipping from $5 to $7, the remainder falls to $10. This small comparison shows why a seemingly minor fulfillment expense can matter even when the selling price stays unchanged.

The tool's ROI field uses product cost as its denominator. In the first example, $12 divided by $10 produces 120%. That is not a return on every dollar invested in the business, nor is it the same as the 40% margin. If you include shipping, fees, equipment or advertising in your investment definition, you need a different denominator. A large displayed ROI can partly reflect the narrow cost basis rather than an unusually profitable business.

The remainder shown here is after the entered product, shipping and modeled platform or payment costs. It is not necessarily your business's accounting net profit. Advertising, packaging, returns, storage, subscriptions, wages and overhead may need separate treatment. Avoid subtracting a cost twice, but do not assume an absent field means the expense disappears. A useful check is to list each real expense and mark whether it is included in an input, represented by a preset or not modeled at all.

Some expenses belong to a specific order, while others are shared across many sales. Dividing monthly overhead by expected sales volume is one way to explore a per-unit allowance outside this form, provided you label the volume assumption. That allowance can change if sales are lower than expected. Taxes require similar care: the tool does not determine which tax amounts are revenue, collected for a government or deductible expenses in your jurisdiction.

Try a second sale price while leaving product and shipping costs unchanged. With a percentage-based custom fee, raising the price also raises the fee, so you do not keep the entire price increase. The arithmetic can show the remainder at each price, but it cannot predict how many customers will buy. A price with a higher modeled margin may produce fewer sales. Demand, competition and product quality are outside the calculation.

Before buying inventory, test a few plausible cost cases, including a higher shipping charge or lower selling price. Check the platform's current fee documentation rather than relying on a preset indefinitely. If the remainder is negative, the modeled deductions exceed the sale price; multiplying that result by more units does not turn it positive. Use the calculator to understand the unit economics you have entered, then assess sales volume, cash flow and wider business costs separately.