eCommerce Profit Calculator
Enter your product costs and selling price. Instantly see your profit, margin, ROI, and what price you need to hit your target.
What Is an eCommerce Profit Calculator?
An eCommerce profit calculator is a tool that shows you exactly how much money you make — or lose — on every product you sell online. You enter your costs (what you paid for the product, shipping, platform fees, ad spend) and your selling price, and it instantly calculates your net profit, profit margin, and return on investment per sale.
Most new online sellers make the same mistake: they look at revenue and think they are doing well, without accounting for all the costs quietly eating into their earnings. Platform fees, payment processing charges, packaging, shipping, and advertising spend can together consume 30 to 60 percent of your selling price before you see a single dollar of profit. This calculator makes every cost visible so you know your real numbers before you commit to a price.
How to Use This eCommerce Profit Calculator
Using the calculator is straightforward. Fill in the fields on the left with your product costs, then use the right side to set your platform and marketing costs. Every number updates instantly — no button to click.
Step 1 — Enter your product costs
Start with your Selling Price — what the customer pays you. Then enter your Cost of Goods (COGS), which is what you paid to buy or manufacture the product. Add your Shipping Cost (what you pay the carrier, not what you charge the customer), your Packaging Cost, and any Other Costs such as returns allowance or overhead.
Step 2 — Choose your platform
Click the platform you sell on — Shopify, Etsy, Amazon, eBay, or your own website. This pre-fills the Platform Fee field with a typical starting rate. Important: platform fees change, and they vary by product category. Always check your actual fee in your seller dashboard and update the field manually to match. The platform buttons are shortcuts, not locked-in values.
Step 3 — Add your marketing spend
Enter your Payment Processing Fee percentage (Stripe and PayPal typically charge around 2.9%). Then add your Ad Spend per Sale — the amount you spend on Facebook, Google, or TikTok ads divided by how many sales those ads generate. If you run no ads, enter zero.
Step 4 — Read your results
The results section shows your Net Profit per Sale, Profit Margin percentage, ROI, total costs, and break-even price. The colour-coded bar breaks down where every dollar of your selling price goes. The suggested prices section tells you what to charge to hit 20%, 30%, or 50% margin on your current cost structure. At the bottom, enter your monthly income goal and the calculator tells you how many units you need to sell to reach it.
Key Profit Metrics Every Online Seller Must Know
Net Profit per Sale
This is the money left in your pocket after every cost is deducted from the selling price. It is the most important number on this page. A positive net profit means you are making money on each sale. A negative number means you are funding your customers’ purchases out of your own savings.
Profit Margin
Profit margin is your net profit expressed as a percentage of your selling price. A 30% margin means that for every £10 you charge, £3 is profit and £7 covers costs. In eCommerce, a healthy net profit margin is generally considered to be between 20% and 40%.
Return on Investment (ROI)
ROI measures how much profit you generate relative to the money you invested in each sale. An ROI of 50% means that for every £100 you spend on goods and costs, you get £150 back.
Break-even Price
Your break-even price is the minimum you can charge for a product without losing money. Sell below this number and every transaction costs you. This figure is your pricing floor.
Markup vs Margin — what is the difference?
Markup is the amount added on top of your cost. A 100% markup on a £10 product gives you a £20 selling price and £10 profit. Margin is that same £10 profit expressed as a percentage of the selling price (£10 / £20 = 50%).
Platform Fees Explained: What Each Marketplace Actually Charges
Shopify
Shopify charges a subscription fee plus transaction fees depending on your payment setup. A starting platform fee of 2 to 5 percent is typical.
Amazon
Amazon charges a Referral Fee on every sale, ranging from 8% to 15% depending on product category. FBA sellers also pay fulfilment fees per unit shipped.
Etsy
Etsy charges a 6.5% transaction fee, a listing fee, and a payment processing fee. Combined, sellers typically pay 10 to 12% of their selling price in fees.
eBay
eBay’s final value fees range from 10% to 15% depending on category, plus a fixed transaction fee per order.
Your own website
Selling through your own website typically involves lower platform fees but requires additional spending on hosting and marketing.
What Is a Good Profit Margin for an Online Store?
- Fashion and clothing: 40–60% gross margin, 15–25% net margin
- Beauty and skincare: 50–75% gross margin, 20–40% net margin
- Electronics and gadgets: 10–20% gross margin, 5–10% net margin
- Home and garden: 30–50% gross margin, 15–25% net margin
- Handmade and craft: 40–70% gross margin
- Dropshipping: 15–30% gross margin, 5–15% net margin
- Print on demand: 20–40% gross margin, 10–20% net margin
How to Calculate the Right Selling Price
The most reliable formula for pricing a product is:
Selling Price = Total Fixed Costs ÷ (1 − Target Margin)
Common pricing mistakes new sellers make
- Forgetting platform fees
- Not including ad spend
- Using markup instead of margin
- Ignoring returns
- Pricing to compete with the cheapest seller
- Not recalculating after fee changes
5 Ways to Improve Your eCommerce Profit Margin
- Negotiate your product cost (COGS)
- Reduce cost per acquisition
- Increase average order value
- Switch to a higher-margin sales channel
- Reduce shipping and packaging costs
Frequently Asked Questions
What is a good profit margin for an eCommerce business?
A good net profit margin is generally between 20% and 40%.
How do I calculate selling price from cost?
Selling Price = Total Cost ÷ (1 − Target Margin)
What costs should I include?
Include product cost, shipping, packaging, platform fees, payment processing, ad spend, and returns.
What is the difference between profit margin and markup?
Markup is based on cost; margin is based on selling price.
How much does Amazon charge?
Amazon charges 8% to 15% referral fees plus fulfilment costs.
How many units to sell for £2,000 profit?
Divide your target profit by your net profit per sale.
Is this calculator free?
Yes, it is completely free with no sign-up required.
Can I use this for dropshipping?
Yes, it works for dropshipping by entering supplier costs and ad spend.