Free Calculator

E-commerce Profit Margin Calculator

Calculate your online store profit margins. Factor in product costs, platform fees, shipping, and marketing expenses.

Monthly revenue

Cost of goods sold

Payment processing fee

Monthly shipping costs

Monthly marketing spend

Other monthly costs

Your Profit Analysis

Monthly Revenue

$10,000

Total Monthly Costs

$6,290

Processing Fees

$290

Monthly Profit

$3,710

Profit Margin

37.1%

Annual Profit (projected)

$44,520

Frequently Asked Questions

A healthy e-commerce profit margin is 20-30% net after all costs. Luxury goods can achieve 40-60%, while commodity products may only reach 5-15%. The key is accurately calculating total costs including platform fees, shipping, returns, and marketing spend.

Platform fees typically range from 0% (self-hosted) to 2-5% per transaction (hosted platforms). A 2% platform fee on $100K annual revenue costs $2,000/year. Factor in payment processing fees (2.4-2.9% + $0.30/transaction) which apply regardless of platform.

Yes, returns directly impact profitability. E-commerce return rates average 20-30% for apparel and 5-15% for electronics. Include return shipping costs, restocking labor, and unsellable inventory in your margin calculations for accurate projections.

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Key Terms to Know

Understand the concepts behind this calculator.

E-commerce Platform

Software that enables businesses to build, manage, and operate online stores, handling product catalogs, shopping carts, checkout, and order management.

AOV (Average Order Value)

The average amount spent per order. Calculated by dividing total revenue by the number of orders. A key metric for e-commerce optimization.

Cart Abandonment

When a customer adds items to their online shopping cart but leaves the site without completing the purchase. Average abandonment rates are around 70%.

Payment Gateway

A service that processes credit card payments for online and traditional retail stores, securely transmitting transaction data between merchants and banks.