Ecommerce Profit Calculator
What actually lands after every cost.
How the ecommerce profit calculator works
Revenue is vanity; profit is what the business keeps. Many stores that look healthy on top-line revenue are barely profitable once the full cost stack, especially ad spend and fulfilment, is counted.
Enter your revenue and each cost layer: cost of goods as a percentage, ad spend, shipping and fulfilment, transaction fees, and other fixed costs. The calculator returns gross profit, net profit, and net margin.
The two costs that most often erode margin are ad spend and shipping. If your net margin is thin, model those two first, then look at cost of goods. Conversion improvements help here too, because they lower the ad cost per order.
The formula
How this is calculated
Gross profit is revenue minus cost of goods. Net profit subtracts ad spend, shipping, transaction fees and other fixed costs. Net margin is net profit over revenue.
Worked example
On $100k revenue with this cost stack, net profit is about $24,100 (a 24% net margin).
Frequently asked questions
What is a healthy ecommerce net margin?
Net margins vary widely by category, but many established stores land between 10% and 25%. Thin margins are not inherently bad if volume and lifetime value are strong, but they leave little room for error.
Which cost should I attack first?
Usually ad spend and shipping, because they scale with volume and are often the largest controllable lines. Improving conversion also lowers your effective ad cost per order, which flows straight to net profit.
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