Advertisement

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

Gross Profit = Selling Price − Product Cost − Shipping
Total Fees = Platform Fee + Payment Fee (% × Price + flat) + Ad Cost
Net Profit = Gross Profit − Total Fees − Return Cost
Net Margin = (Net Profit ÷ Selling Price) × 100
ROI = (Net Profit ÷ Total Cost) × 100

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.

Related Calculators