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Ecommerce

Ecommerce Profit Calculator

Estimate ecommerce revenue, contribution profit and net margin after product cost, shipping, fees and ads.

Ecommerce

Ecommerce Profit Calculator

Use this before scaling a store, product launch or ad campaign where order economics need to survive fulfillment costs.

How to use this calculator

Start with conservative inputs, copy the result, then test a best-case and worst-case version. For production decisions, compare the estimate against actual accounting, analytics and payment data.

Best used for

Use this before scaling a store or campaign to see whether order economics survive product cost, shipping, fees and ads.

Formula

Ecommerce profit depends on order-level contribution. This calculator subtracts product cost, shipping, processing fees and ad spend before estimating margin.

Formula

Net profit = orders * (AOV - product cost - shipping - payment fees per order) - ad spend.

Example

Store campaign profit check

A store gets 500 orders at $74 AOV, $28 product cost, $7 shipping and $8,000 in ad spend.

  • Orders: 500
  • AOV: $74
  • Product cost: $28
  • Shipping: $7
  • Ad spend: $8,000
The example estimates about $9,890 in net profit before overhead and refunds.

How to read the result

  • Positive contribution per order means each order helps cover fixed overhead.
  • Net margin can turn negative quickly when shipping, refunds or ad spend rise.
  • AOV improvements can be more valuable than traffic growth when fixed acquisition cost is high.

Common mistakes

  • Ignoring shipping subsidies, payment fees and returns.
  • Using gross revenue to judge ad success.
  • Scaling a product before checking profit per order.

FAQ

Should refunds be included?

Yes for a production model. Reduce orders or AOV, or add refund cost separately when refund rates are material.

Is ad spend a variable cost?

It depends on how the campaign is managed. This calculator subtracts total ad spend for the period to estimate contribution after acquisition.

What costs are not included?

Inventory financing, returns, warehousing, customer support, taxes and fixed overhead are not included in this simple model.

Important limits

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