How to Use the Ecommerce Profit Calculator
This quick guide walks you through every field so you can estimate profit and margin accurately before you launch a product or ad campaign.
Step-by-step input guide
- Enter Selling Price: Add the final customer price in your selected currency. This is the revenue side of your equation.
- Add Product Cost: Enter the landed unit cost or COGS, including manufacturing and inbound costs if needed.
- Add Shipping Cost: Include delivery and fulfillment expenses per order so your margin reflects real operational cost.
- Set Platform Commission: Choose percentage mode for marketplace fee rates, or fixed amount mode for flat commissions.
- Enable Ad Cost (Optional): Tick the checkbox if you run paid traffic. Then input average ad cost per order.
- Other Costs: Add packaging, transaction fees, return reserves, or any extra cost not included above.
[Calculator Screenshot]
Read the results correctly
- Net Profit: Remaining amount after all costs.
- Gross Profit & Gross Margin: Gross profit is price minus COGS; gross margin is gross profit divided by selling price.
- Net Profit Margin: Net profit after shipping, fees, optional ads, and other costs, divided by selling price.
- Min revenue ROAS: Order-level guardrail (selling price ÷ contribution before ads). Compare to your ad platform ROAS with attribution in mind — not a substitute for Meta/Google/TikTok reporting.