About the E-commerce Profit Calculator
This e-commerce profit calculator shows what you actually keep from each order once every cost is taken out: the product cost (COGS), what you pay to ship and pack it, marketplace or platform commission, card processing fees and the advertising it took to win the sale. It works for Shopify stores, Etsy and Amazon sellers, WooCommerce shops and dropshipping businesses alike.
Use it before launching a product to test whether the price leaves room for ads, when a supplier or carrier changes prices, or when a campaign looks busy but the bank balance does not move. Besides profit per order and net margin, it reports your break-even cost per acquisition (the most you can spend on ads per order without losing money) and the break-even ROAS your ad dashboard needs to show.
The calculator assumes percentage fees are charged on the full amount the customer pays, including any shipping you charge, which is how most platforms and payment processors bill. Returns, refunds and chargebacks are not included, so leave a safety margin if your category has a high return rate.
With the default inputs, the profit per order is $9.54. Change any value above to recalculate instantly.
How to use the e-commerce profit calculator
- 1Enter the selling price and any shipping you charge the customer.
- 2Add your unit product cost, outbound shipping and packaging.
- 3Set the marketplace fee and your payment processor’s percentage and fixed fee.
- 4Enter your average ad cost per order (ad spend ÷ orders).
- 5Enter monthly orders, then check profit per order, margin and break-even ROAS.
Formula and method
Revenue per order is the selling price plus any shipping you charge. From it the calculator subtracts the product cost, your own shipping and packaging, the marketplace fee (a percentage of revenue), the payment processor fee (a percentage plus a fixed amount) and the average ad cost to acquire the order.
Profit before advertising is the most you could spend on ads for one order and still break even, so it doubles as your break-even CPA. Dividing revenue by that figure gives the break-even ROAS: an ad campaign reporting a lower return is losing money even if it generates sales.
- P
- Selling price
- S
- Shipping charged to the customer
- C
- Cost of goods sold per unit
- f%
- Marketplace / platform fee rate
- p%, F
- Payment processing rate and fixed fee
- A
- Ad cost per order (CPA)
Worked examples
Shopify store, $40 product with paid ads
A $40 sale costs $12 for the product, $7 to ship and pack, $1.46 in card fees (2.9% + $0.30) and $10 in ads, leaving $9.54 profit — a 23.85% margin. At 300 orders that is $2,862 a month. Without ads each order earns $19.54, so ads must return at least 2.05x (break-even ROAS).
Etsy listing with shipping charged
The buyer pays $30 including shipping. Etsy’s 6.5% transaction fee ($1.95) and 3% + $0.25 processing ($1.15) total $3.10. After $7 product cost, $5.30 shipping and packaging and $2 of ads, profit is $12.60 per order, or $1,890 on 150 orders.
Dropshipping product losing money on ads
At $29.99 the order carries $16 of product and shipping and $1.17 of card fees, leaving $12.82 before ads. Paying $15 per order in ads turns that into a $2.18 loss — about $1,090 a month at 500 orders. Ads need a ROAS above 2.34x to break even.
Frequently asked questions
What is a good profit margin for an e-commerce store?+
It varies by category, but many online stores target a net margin of roughly 10–20% after all costs including ads. Gross margin (price minus product cost) usually needs to be 50% or more to leave room for shipping, fees and customer acquisition.
What is break-even ROAS?+
Break-even ROAS is revenue divided by profit before ad spend. If an order brings in $40 and leaves $20 before ads, you need a ROAS of 2.0 — every $1 of ads must produce $2 of sales — just to break even.
Should shipping fees be included in revenue?+
Yes. Shipping you charge is money the customer pays you, and most platforms and payment processors charge their percentage fee on it too. Your actual carrier cost is then subtracted as an expense.
How do I calculate ad cost per order?+
Divide total ad spend for a period by the number of orders in the same period. If you spent $3,000 on Meta and Google ads and received 300 orders, your blended ad cost per order (CPA) is $10.
Does this include returns and refunds?+
No. To account for returns, add an average return cost per order to the packaging field — for example a 5% return rate on a $40 item that cannot be resold adds about $2 per order plus return shipping.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.