Profit margin calculator for online stores
Most new stores calculate margin on product cost alone, then wonder where the money went. This one includes every cost that hits a real order.
Per-order results
Profit per 100 orders: —
Get help building a profitable storeMargin vs. markup: the difference that trips people up
Markup is profit as a percentage of cost. Margin is profit as a percentage of price. A product that costs $10 and sells for $20 has a 100% markup but a 50% gross margin. Advertisers, investors and accountants talk in margin, so this calculator reports both.
The formulas
- Fees = price × (payment % + platform %) + fixed payment fee
- Net profit = price − product cost − shipping − fees − ad cost
- Net margin = net profit ÷ price
- Price for target margin = (cost + shipping + fixed fee + ad cost) ÷ (1 − payment % − platform % − target margin)
What's a good margin?
It varies by category, but after all costs including ads, many healthy small stores aim for 20–40% net margin per order. Below 15% leaves little room for returns, discounts or supplier price rises. If your numbers are thin, raise average order value with bundles, or cut acquisition costs with email and organic content. Our pricing guide goes deeper.