Gross revenue
$3,999.00
100 orders at $39.99 AOV
Ecommerce margin planner
Business Profit Margin Calculator
Calculate ecommerce profit after product cost, ads, shipping, platform fees, payment fees, and other selling costs. Built for Shopify, TikTok Shop, and marketplace-style product testing.
Net profit
$983.06
24.58% final margin
Break-even ROAS
2.18x
Revenue divided by pre-ad contribution
Target price
$37.50
20% target margin
Product costAd spendShippingPlatform feesAI ideas
Inputs
Order, cost, and fee details
Advertising cost
Switch between campaign spend and per-order CPA.
Results
Final profit margin
Total cost
$3,015.94
75.42% of revenue
Profit margin
24.58%
Tight unit economics
Markup
32.6%
Profit divided by total cost
Cost breakdown
$3,015.94Product cost$1,200.00
Ads$850.00
Shipping paid$475.00
Packaging / fulfillment$80.00
Platform + payment fees$285.94
Other costs$125.00
Break-even price
$29.49
Minimum item price at this cost base
Break-even CPA
$18.33
Max ad cost per order before profit hits zero
Actual ROAS
4.7x
Revenue divided by ad spend
Profit is positive, but ads, refunds, or discounting can erase it quickly.
Hugging Face AI
Better margin ideas
Generate AI ideas after reviewing the calculated margin.
GuideHow it works3 steps
01
Enter order economics
Add selling price, product cost, shipping, ad spend, platform fees, and the number of orders or units.
02
Review the margin
Check net profit, final margin, break-even ad spend, break-even ROAS, and the sale price needed for your target margin.
03
Ask AI for ideas
Send the calculated summary to the Hugging Face-backed AI endpoint for practical margin improvement suggestions.
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FAQFrequently asked questions
How is ecommerce profit margin calculated?
The calculator subtracts product cost, ads, shipping cost, packaging or fulfillment cost, platform fees, payment fees, fixed fees, and other costs from gross revenue. Profit margin is net profit divided by gross revenue.
Can I use this for Shopify and TikTok Shop?
Yes. Enter the exact fee percentages and fixed order fees from your Shopify, TikTok Shop, payment provider, or marketplace statement.
Does ad spend calculate by total campaign or per order?
Both modes are supported. Use total ad spend for a campaign batch, or per-order ad cost when you already know your CPA.
What is break-even ROAS?
Break-even ROAS is the revenue divided by contribution before ads. If actual ROAS is above that number, the order set is profitable before tax and overhead assumptions.
Are taxes included?
No. This calculator focuses on unit economics before taxes. Add tax, refunds, chargebacks, warehouse fees, or agency fees in other costs if they belong in your model.