Free tool · Profit margin calculator
Profit margin calculator: what you keep from each order.
Enter your price and costs and see net profit per order, net margin, break-even ROAS and the price you need for your target margin.
Enter a selling price to see the numbers.
What it does
The calculator takes the selling price, product cost, the shipping you pay, payment fees (percent plus fixed), platform or marketplace fees, ad cost per order and your return rate. It shows gross margin, markup, net profit per order, net margin, break-even ROAS, break-even CPA and the price needed for a target net margin.
Payment fee presets are examples only. Fees vary by plan, country and card type, so edit them to match your own account. Every formula is listed under "How we calculate" next to the result.
Nothing is sent anywhere. The math runs in your browser.
Why it matters
Gross margin looks healthy on paper and still loses money once shipping, fees, returns and ads come out of each order. Many stores scale ad spend on a ROAS that is below their break-even point and only see it at the end of the month.
Knowing your break-even ROAS and CPA turns ad reports into a yes or no: above the line the campaign earns, below it every sale costs you.
How to use the result
- Compare your ads' ROAS with the break-even ROAS here. Below it, the campaign loses money on each order.
- Use the break-even CPA as the ceiling for your cost per purchase.
- Try the target margin field to test a price change before you make it.
- Run it per product. Margins differ a lot between items in one catalog.
- If returned items cannot be resold, your real profit is lower than shown: the calculator assumes returns go back to stock.
Questions
What is the difference between margin and markup?
Margin is profit as a share of the price. Markup is profit as a share of the cost. A product that costs 50 and sells for 100 has a 50% margin and a 100% markup.
What is break-even ROAS?
The return on ad spend at which ads cost exactly what the order earns before ads. It is price divided by profit before ads. Above it you profit, below it you lose money.
What is break-even CPA?
The most you can pay in ads to get one order without losing money. Here it equals the profit per order before ad cost.
What is a good profit margin for an online store?
It depends on the category, price point and how much you spend on ads. Compare your net margin with your own costs and goals rather than a general number.
Should I include VAT or sales tax in the price?
No. Use the price without tax, because the tax goes to the government, not to you.