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E-commerce Profit Calculator

Work out what an online order really earns after product cost, shipping, payment and marketplace fees, advertising and returns. See the highest ad cost per order you can afford, the break-even ROAS, and what your monthly order volume adds up to after fixed costs.

Updated Oct 16, 2026Free · no sign-upFormulas tested

Your inputs

Enter one typical order. All costs are per order; percentage fees apply to the order total including the shipping you charge.

$
$
What one unit costs you delivered to your warehouse, including inbound freight and duties.
$
Enter 0 if you offer free shipping.
$
Postage or fulfillment-center shipping fee for the order.
$
%
$
%
A marketplace referral fee or platform commission, from your channel's fee schedule. Enter 0 for your own store.
Advertising cost as
$
Monthly ad spend divided by all orders (blended), or your cost per acquisition if every order comes from ads.
%
Share of orders that come back for a refund.
$
Return postage, handling and repackaging. Add the product cost if returned items cannot be resold.
orders
$
Store subscription, software, salaries and rent that do not change with orders.

Results

Profit per order$12.39After product, shipping, fees, ads and expected returns on a $52.99 order
Net margin per order
23.4%
Max ad cost per order (break-even CPA)
$24.39
Profit before advertising
Break-even ROAS
2.17×
Break-even ACOS 46.0%
Your ROAS
4.42×
Monthly profit before fixed costs
$7,436
Monthly net profit
$2,936
After $4,500 of fixed costs
Orders needed to cover fixed costs
364

Each order keeps $12.39, 23.4% of the $52.99 the customer pays. Before advertising it earns $24.39, so you can spend up to that on ads per order (a ROAS of at least 2.17) before orders start losing money.

Where the money from one order goes

Order revenueLeft after this costCostCost beyond revenueProfit
$0$20$40$60OrderProductShipping & packagingFeesAdvertisingReturnsProfit

Each red block is a cost taken out of what was left; the grey bar is what remains after it.

Profit at different selling prices

Same costs, 600 orders a month and $4,500 of fixed costs. Real order volume usually changes with price.

PriceProfit per orderMarginBreak-even ROASMax CPAMonthly net
$38.40$3.848.8%2.74×$15.84-$2,196
$43.20$8.1216.8%2.40×$20.12$370
$48.00$12.3923.4%2.17×$24.39$2,936
$52.80$16.6728.8%2.02×$28.67$5,502
$57.60$20.9533.5%1.90×$32.95$8,068

Results are estimates from the numbers you enter. They are not financial, tax or legal advice.

How to use the e-commerce profit calculator

Enter one typical order. If your products vary a lot, run the calculator for your best seller and your average order separately.

  1. Price and product cost. The selling price is what the customer pays for the item. The product cost is the landed cost: what the unit costs you once it reaches your warehouse, with inbound freight and duties included.
  2. Shipping and packaging. Enter what you charge the customer for shipping (0 for free shipping) and what the carrier or fulfillment service charges you. Packaging covers boxes, inserts and any pick-and-pack fee.
  3. Fees. Your payment processor’s statement shows its percentage and fixed fee per transaction. If you sell on a marketplace, enter its referral fee or commission from the fee schedule; marketplaces often include payment processing in that fee, so set the processor fields to 0 in that case.
  4. Advertising. Enter either a dollar cost per order or your ACOS. For a blended figure, divide the month’s ad spend by all orders.
  5. Returns. Enter the share of orders that come back and what each return costs you in postage and handling.
  6. Orders and fixed costs. Monthly orders and the fixed costs you pay regardless of sales (store subscription, apps, salaries, rent) turn profit per order into monthly net profit.

How profit per order is calculated

Order revenue R = Price + Shipping charged
Fees = R × (Payment % + Platform %) + Fixed transaction fee
Returns = Return rate × (Price − Product cost + Cost per return)
Profit before ads = R − Product cost − Shipping paid − Packaging − Fees − Returns
Profit per order = Profit before ads − Ad cost per orderWith ACOS, ad cost per order = ACOS × R. Returned orders are assumed to be refunded the item price but not the shipping charge, with the item restocked and fees not refunded.
Break-even ROAS = R ÷ Profit before ads
Maximum CPA = Profit before ads
Monthly net profit = Profit per order × Orders − Fixed costsCPA is the cost per acquisition: the ad spend needed to win one order.

A worked example

Store A sells a product for $48 and charges $4.99 for shipping, so each order brings in $52.99. The product costs $15, postage $7.40 and packaging $1.20. Card processing at 2.9% plus $0.30 takes $1.84.

With an 8% returns rate and $6.50 per return, the expected cost of returns is $3.16 per order. That leaves $24.39 before advertising, which is also the most the store can pay in ads per order: the break-even ROAS is 2.17×.

At $12 of ad cost per order, profit is $12.39 per order, a 23.4% margin. Across 600 orders a month, that adds up to $7,436, and $2,936 after $4,500 of fixed costs. The store covers its fixed costs from order 364 onward.

What moves profit per order the most

Change from the example Profit per order Margin
The example $12.39 23.4%
Ads cost $16 per order instead of $12 $8.39 15.8%
Returns rate 20% instead of 8% $7.65 14.4%
Sold on a marketplace with a 15% fee (no separate card fee) $6.28 11.9%
Ads at a 20% ACOS $13.80 26.0%

Advertising is usually the biggest lever and the least stable one. A few dollars more per order, from rising auction prices or a weaker campaign, can take a third of the profit. Returns matter most in categories like clothing and shoes, where return rates are high and each return costs postage both ways. Marketplace fees are predictable but large: in the example the 15% fee costs $7.95 per order and raises the break-even ROAS from 2.17× on the store’s own site to 2.90×.

Break-even ROAS and max CPA

The two numbers say the same thing in different units. Maximum CPA is the most you can spend in ads to win one order, $24.39 here. Break-even ROAS turns that into the ratio ad platforms report: every $1 of ads must bring in at least 2.17× of revenue.

Your actual ROAS in the example is 4.42×, comfortably above break-even. Keep in mind which figure you are comparing with. Platform ROAS counts only the orders the platform attributes to itself, often including customers who would have bought anyway. A blended figure, total revenue divided by total ad spend, is a stricter test of whether advertising pays. Repeat purchases work the other way: a customer who buys again without ads can justify a first-order CPA above break-even, as long as you know your repeat rate.

Free shipping or a shipping charge

Building shipping into the price looks the same on paper: a $52.99 order either way. Profit per order, though, falls slightly to $11.99 from $12.39, because refunds on returned items are now refunds of a higher price. Whether free shipping pays depends on whether it lifts conversion enough to cover that, which only a test with your own customers can show.

What this calculator does not include

  • Sales tax or VAT. Collected on top of the price in the US and remitted to the state, so leave it out of the selling price.
  • Discounts and coupons. Enter the price customers actually pay after codes and promotions.
  • Inventory costs. Storage fees, unsold stock, write-offs and the cash tied up in inventory are not per-order costs here; add storage to fixed costs.
  • Chargebacks and fraud, which add a cost on a small share of orders.
  • Partial refunds and exchanges. The return model assumes a full refund of the item price; exchanges cost postage but keep the sale.
  • Customer lifetime value. Profit is for one order; repeat purchases are not counted.

Frequently asked questions

How do I calculate profit per order for an online store?
Start with what the customer pays, including any shipping charge. Subtract the product cost, the shipping and packaging you pay, payment and marketplace fees, the advertising cost per order and the expected cost of returns. In the example, a $52.99 order leaves $12.39, a 23.4% margin.
What is break-even ROAS?
Break-even ROAS is the return on ad spend at which advertising uses up all the profit an order makes before ads. It equals order revenue divided by profit before advertising. Here it is 2.17×: each $1 of ads must bring in at least that much revenue, or the orders it wins lose money.
What is the difference between ROAS and ACOS?
They are the same ratio upside down. ROAS is revenue divided by ad spend; ACOS (advertising cost of sales) is ad spend divided by revenue. A ROAS of 5 is an ACOS of 20%. Marketplaces tend to report ACOS, while most ad platforms report ROAS.
What is a good profit margin for e-commerce?
It varies widely by product and channel. Net margins after advertising in the single digits to around 20% are often mentioned for online stores, with marketplace sellers and heavily advertised brands toward the lower end. What matters more is whether the margin covers your fixed costs at the order volume you can realistically reach.
Should I offer free shipping?
Free shipping is never free: you either absorb the cost or build it into the price. Raising the price by the shipping charge keeps profit roughly the same, though percentage fees and refunds on returned items then apply to a larger price. Compare both versions in the calculator with your own return rate.

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This calculator is for education and planning. It uses the formulas described above and the inputs you provide; real results depend on fees, taxes, timing and other details that a general tool cannot know. PromtFinance does not give personal financial advice. Check important decisions with your provider or a qualified professional.