E-commerce & business

Profit Margin Calculator

Go beyond basic gross margin by including common per-order costs such as shipping, payment fees and customer acquisition.

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Try a real-world scenario

Estimate an online shop’s unit profit

Sell $80 · product $35 · shipping $5 · acquisition $5 · fee 2.9% · 100 units

  1. 01

    Payment fee: 80 × 0.029 = $2.32.

  2. 02

    Included unit costs: 35 + 5 + 5 + 2.32 = $47.32.

  3. 03

    Unit profit: 80 − 47.32 = $32.68.

  4. 04

    Margin: 32.68 ÷ 80 × 100 = 40.85%; 100-unit profit = $3,268.

Estimated profit is $32.68 per unit.

Illustrative example · This scenario excludes returns, fixed overhead and income taxes. Include all relevant costs before making a pricing decision.

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Understand the math

Formula & method

Profit = revenue − all included costs; margin = profit ÷ revenue × 100

This calculator is designed for scenario planning. Include only the costs that belong in the decision you are making, and use accounting records for formal reporting.

A little more clarity

Frequently asked questions

Should I include shipping and advertising?

Include them when you want a contribution-style view of what remains after those costs. Formal accounting definitions can differ.

Is this a substitute for accounting software?

No. It is a planning calculator and does not replace complete bookkeeping or professional accounting advice.