Ecommerce Profit Calculator
Net profit per order after every fee.
Reviewed by the Calculation Machine team · Updated 24 October 2026 · How we check our maths
Your values
ⓘ Live results
- Net profit per order
- $14.26
- Net margin
- 28.5%
- Marketplace fee
- $6.00
- Break-even ad spend
- $23.49
Quick answer
Ecommerce net profit per order is the selling price minus product cost, shipping, platform fees and ad cost per order, minus an allowance for returns. A $49.99 product costing $14, with $6.50 shipping, a 12% marketplace fee ($6.00), $8 of ads per order and a 6% return rate, makes $14.26 net per order, a 28.5% margin. Ad spend could rise to $23.49 per order before the order stops making money.
What the Ecommerce Profit calculator does
This calculator shows what one order actually earns once every per-order cost is taken off. It suits Shopify and WooCommerce stores, marketplace sellers, dropshippers and print-on-demand shops, where a healthy-looking markup can disappear once fees, shipping and ad costs are counted.
It also gives your break-even ad spend: the most you can pay in advertising to win an order before that order loses money. Divide the selling price by it to get your break-even ROAS, then compare with campaign results in the ROAS calculator.
Returns are modeled as losing the product cost and shipping on that share of orders. The calculator does not include monthly fixed costs such as your store subscription, apps or staff. Once you know profit per order, the break-even calculator shows how many orders a month cover those overheads.
The formula
Fee = price × fee % ÷ 100 Net profit = price − COGS − shipping − fee − ad cost − return rate × (COGS + shipping) Net margin = net profit ÷ price × 100 Break-even ad spend = price − COGS − shipping − fee
| Symbol | Meaning | Unit |
|---|---|---|
| price | What the customer pays for the item, excluding sales tax or VAT | $ |
| COGS | Landed product cost: unit cost, inbound freight, duties, packaging; for print-on-demand, the provider's base price | $ |
| shipping | What you pay to ship the order (net of any shipping the customer pays) | $ |
| fee % | Marketplace commission plus payment processing, as a percentage of price | % |
| ad cost | Ad spend divided by orders from ads (cost per acquisition) | $ |
| return rate | Share of orders returned | % |
This is a per-unit contribution calculation. The return adjustment is a simple allowance: it assumes a returned item and its shipping are written off, but it does not also remove the fees and ad cost of the refunded order, so with high return rates real profit will be somewhat lower. If returned stock can be resold, reduce the return rate to the share that cannot.
Worked examples
Print-on-demand T-shirt on a marketplace
A $29.99 shirt with a $13.50 print-on-demand base cost, free shipping built into the base price, about 15% in total marketplace and payment fees, $5 of ads per order and 3% returns.
Inputs
- Selling price29.99 $
- Cost of goods13.5 $
- Shipping cost0 $
- Marketplace fee15 %
- Ad cost per order5 $
- Return rate3 %
Result
- Net profit per order$6.59
- Net margin22%
- Marketplace fee$4.50
- Break-even ad spend$11.99
$6.59 per shirt, a 22% margin. Ads can rise to about $12 per order before the shirt stops making money, so test campaigns with that ceiling in mind.
Own Shopify store, apparel with high returns
An $89 jacket costing $22, $9 shipping, 3% payment processing, $18 of ads per order, and a 15% return rate.
Inputs
- Selling price89 $
- Cost of goods22 $
- Shipping cost9 $
- Marketplace fee3 %
- Ad cost per order18 $
- Return rate15 %
Result
- Net profit per order$32.68
- Net margin36.7%
- Marketplace fee$2.67
- Break-even ad spend$55.33
$32.68 per order, 36.7% net margin. Selling on your own store keeps fees low, but returns at this level cost about $4.65 per order, so better size guides pay off directly.
Low-priced item that loses money
A $24 accessory costing $11.80, $4.50 shipping, 6.5% fees, $6 of ads per order and 2% returns.
Inputs
- Selling price24 $
- Cost of goods11.8 $
- Shipping cost4.5 $
- Marketplace fee6.5 %
- Ad cost per order6 $
- Return rate2 %
Result
- Net profit per order-$0.19
- Net margin-0.8%
- Marketplace fee$1.56
- Break-even ad spend$6.14
A small loss on every order. Options: raise the price, bundle items to spread shipping, set a free-shipping threshold, or rely on repeat buyers who cost nothing in ads.
Costs sellers often leave out
- Payment processing on your own store, typically a percentage plus a small fixed fee per transaction.
- Packaging and inserts: boxes, mailers, tissue, thank-you cards. Add them to COGS.
- Inbound freight and duties on stock from overseas suppliers.
- Discount codes and free-shipping promotions: enter the average price actually paid, not the list price.
- Chargebacks and fraud, which can carry a fee on top of the lost sale.
Marketplace fees differ by platform and category; the Etsy fee calculator, FBA fee calculator and Shopify fee calculator break them down.
Healthy net margins by business model
Margins vary widely with product category and how much you spend on ads, so treat these as rough reference points, not benchmarks you must hit.
| Model | Typical net margin per order | What drives it |
|---|---|---|
| Own brand, own store | 15–30% | Low fees, but high ad costs to drive traffic |
| Marketplace reseller | 5–15% | Commission plus competition on price |
| Dropshipping | 5–20% | High product cost and ad dependence |
| Print-on-demand | 10–25% | Base cost leaves limited room for ads |
| Digital products | Often 70%+ | No product or shipping cost |
Using break-even ad spend and ROAS
Break-even ad spend is the profit per order before advertising. Divide your price by it for break-even ROAS: with a $49.99 price and $23.49 break-even ad spend, that is about 2.1. A campaign returning less than 2.1× its spend in revenue loses money on first orders.
If customers buy again, you can justify a higher first-order ad cost. Compare it with lifetime value and your customer acquisition cost rather than judging on the first order alone.
How to use the Ecommerce Profit Calculator
- 1Enter the average price customers actually pay per order, after discounts and excluding tax.
- 2Enter landed product cost (including packaging) and what you pay to ship one order.
- 3Enter total platform and payment fees as a percentage of price.
- 4Enter ad spend per order (total ad spend ÷ orders from ads) and your return rate.
- 5Read net profit, net margin and break-even ad spend; adjust price or costs to test scenarios.
Frequently asked questions
How do I calculate profit on an ecommerce product?
Take the selling price and subtract product cost, shipping, platform and payment fees, and ad cost per order, then allow for returns. Divide the result by the price for your net margin.
What is a good profit margin for an online store?
Many physical-product stores aim for roughly 10–30% net per order after ads, but it depends heavily on category, price point and repeat-purchase rate.
Should I include packaging in cost of goods?
Yes. Boxes, mailers and inserts are a cost of every order, so add them to COGS along with inbound freight and duties.
How do I calculate ad cost per order?
Divide total ad spend by the number of orders those ads produced. $1,200 of ads that drove 150 orders is $8 per order.
How is print-on-demand profit calculated?
Use the provider's base price (product plus printing) as COGS and their shipping charge as shipping. Then subtract marketplace or store fees and any ad spend from your retail price.
References
- Publication 334, Tax Guide for Small Business (cost of goods sold) — Internal Revenue Service
- Marketing Metrics: The Manager's Guide to Measuring Marketing Performance (Farris, Bendle, Pfeifer & Reibstein) — Pearson FT Press
About this calculator
- Built and reviewed by the Calculation Machine team · How we build and test calculators
- Last reviewed: October 24, 2026
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