Ecommerce Profit Margin Calculator

See what you actually keep from every sale — after product costs, shipping, fees, ads and returns. Change any number and everything updates instantly.

Where do you sell?

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$
$
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30%

Drag to see the price and ad budget that hit this margin.

Net profit per order

42.0% margin
$42.00

Your costs could rise 72.4% before this order stops making money.

Revenue $100.00Total cost $58.00

Where your revenue goes

  • Product cost$30.0030.0%
  • Shipping & fulfillment$8.008.0%
  • Advertising$20.0020.0%
  • Your profit$42.0042.0%

Your ad budget

Max ad spend per order

$62.00

Break-even ROAS

1.62x

Max ad spend at 30% margin

$32.00

Your pricing

Break-even price

$58.00

Price for 30% margin

$82.86

Product markup

233.3%

What if you run a discount?

20%

Profit per order

$22.00

−$20.00 vs now

Margin

27.5%

−14.5 pts

Profit reaches zero at about 42.0% off.

Full breakdown
Product revenue
$100.00
Discount
$0.00
Net revenue
$100.00
Product cost
$30.00
Packaging
$0.00
Shipping
$8.00
Fulfillment
$0.00
Platform fees
$0.00
Payment fees
$0.00
Advertising
$20.00
Returns
$0.00
Taxes & duties
$0.00
Other costs
$0.00
Contribution profit
$42.00
Overhead
$0.00
Net profit
$42.00
Net margin
42.0%
Contribution margin
42.0%
Return on cost (ROI)
72.4%
Current ROAS
5.00x

This calculator gives estimates based on the values you enter. Marketplace fees, taxes, payment processing, shipping and refund treatment vary by platform, country, category and account — check important decisions against your platform statements or accounting records. Your numbers stay in your browser.

How it works

Net profit & margin

What you keep after every cost of the order — product, shipping, fees, ads, returns and overhead. Margin is that profit as a share of revenue.

Net profit = Revenue − Total costs
Margin = Net profit ÷ Revenue

Example: $100 − $68 = $32 profit → 32% margin

Margin vs markup

Margin compares profit to the selling price. Markup compares the price to what the product cost you. They are not the same number.

Markup = (Price − Product cost) ÷ Product cost

Example: $100 price, $30 product → 233.3% markup

Max ad spend (CAC)

The most you can spend to win one order before it stops making money. Spend less and the order is profitable; spend more and it isn't.

Max CAC = Revenue − All non-ad costs

Example: $100 − $48 = $52 per order

Break-even ROAS

The return on ad spend your campaigns need just to break even. Ads reporting a lower ROAS are costing you money.

Break-even ROAS = Revenue ÷ Max CAC

Example: $100 ÷ $52 → 1.93x (rounded up to be safe)

Target price

The price that gives you a chosen margin. Percentage fees grow with the price, so the calculator solves for it exactly instead of guessing.

Lowest price where Margin ≥ Target

Example: 30% target → $96.78 per unit

Returns, taxes & overhead

Add an average returns allowance, the duties you pay, and your fixed monthly costs spread per order to see profit after everything.

Overhead per order = Monthly fixed costs ÷ Orders

Example: $3,000 ÷ 1,000 orders = $3 per order

Frequently asked questions

What is a good profit margin for an online store?

It depends heavily on your category, price point and business model, so there is no single right number. Set the target margin slider to your own goal and the calculator shows the price and ad budget that reach it.

What's the difference between margin and markup?

Margin is profit divided by the selling price; markup is the price increase over product cost, divided by that cost. A product that costs $50 and sells for $100 has a 100% markup but a 50% gross margin.

What is break-even ROAS and why does it matter?

Break-even ROAS is the return on ad spend at which an order makes exactly zero profit. If your ads platform reports a ROAS below it, each order from those ads is losing money — even when revenue looks healthy.

Why isn't the target price just cost ÷ (1 − margin)?

Because platform and payment fees (and a percentage returns allowance) grow as the price grows. The calculator searches for the exact lowest price that still hits your margin after those fees, and rounds up so you never land just below it.

Should ad spend be per order or per unit?

Per order. You pay to acquire the customer once, however many units they buy — so the calculator multiplies product price and cost by quantity, but not ads, shipping or packaging.

Are my numbers saved or sent anywhere?

No. The calculation runs entirely in your browser; your prices and costs are never sent to ASSOSIATIX or anyone else, and no account is needed.

Want numbers like these to go up?

ASSOSIATIX designs storefronts and builds custom commerce systems for growing brands. If the math points to a bigger problem, we can help fix it.