E-commerce Profit Calculator
Calculate your true e-commerce profit after all fees, costs, and returns. Enter your selling price, product cost, shipping, platform fees, payment processing, advertising cost, and return rate.
E-commerce Profit Formula
Frequently Asked Questions
Common fees include platform/marketplace fees (e.g. Shopify, Amazon), payment processing fees (typically 2.9% + $0.30 for Stripe/PayPal), shipping costs, advertising costs, and returns/refunds. These can easily consume 30–50% of revenue.
Average e-commerce net margins are 10–30%. Margins above 20% are considered healthy. Dropshipping businesses typically see 15–30%. Product-based brands can achieve 20–40% with strong branding.
Returns are a major profit killer. The average e-commerce return rate is 20–30%. Each return costs you the refund plus restocking/disposal costs. High-return categories (fashion, electronics) require higher margins to stay profitable.
ROI (Return on Investment) measures profit relative to the cost invested. A 50% ROI means for every $1 spent (on product cost, shipping, fees), you earn $0.50 profit. A positive ROI means the product is profitable.
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