E-commerce Profit Calculator
Calculate your true profit per unit after product cost, shipping, duty, VAT/GST, marketplace fees and advertising cost. Works for any platform — Amazon, Shopify, TikTok Shop, Shopee or Lazada.
Enter your selling price and all cost components to calculate true profit per unit.
Formula
Net Profit = Selling Price − Product Cost − Shipping − Duty − VAT/GST − (Selling Price × Platform Fee %) − Ad Cost per Unit | Profit Margin = (Net Profit ÷ Selling Price) × 100
Sum all cost components (product, freight, duty, tax, platform fees, advertising) and subtract from selling price. Divide by selling price to get percentage margin.
Frequently Asked Questions
Use this in your workflow
After calculating profit per unit, use the Landed Cost Calculator to model freight and duty, or the Breakeven Ad ROAS Calculator to find your minimum return on ad spend. Browse all Free Business Calculators.
Worked example: selling a product on a marketplace
A seller ships electronics from China to the US via Amazon FBA.
| Item | Value |
|---|---|
| Selling price | $49.99 |
| Product cost (FOB) | $12.00 |
| Shipping per unit | $3.50 |
| Import duty | $1.80 |
| Platform fee (15%) | $7.50 |
| Ad cost per unit | $6.00 |
| Net profit per unit | $19.19 |
| Profit margin | 38.4% |
When to use this calculator
- →Before sourcing: check if a product has viable margins after all costs
- →Pricing decisions: find the minimum price to maintain target profit margin
- →Platform comparison: compare net profit selling on Amazon vs Shopify vs TikTok Shop
- →Ad spend budgeting: determine how much you can spend on ads and remain profitable
Common mistakes
Forgetting platform fees in margin calculations
Marketplace fees (typically 8–20%) significantly reduce profit. Always include referral fees, payment processing, and fulfilment charges in your cost stack.
Not including allocated ad cost per unit
If you spend $1,000 on ads to sell 200 units, each unit bears $5 in ad cost. Omitting this overstates profit dramatically.
Ignoring returns and refund rates
If 5% of orders are returned, your effective margin drops. Factor in return shipping costs and unsaleable inventory.
Responsible use
This calculator provides estimates based on manual inputs. Actual marketplace fees vary by category, country, seller status and promotional campaigns. Always verify current fee schedules with your platform before making business decisions.
Frequently asked questions
How do I calculate e-commerce profit per unit?
Subtract all costs from the selling price: Profit = Selling Price − Product Cost − Shipping − Duty − VAT/GST − Platform Fees − Ad Cost per Unit.
What costs should I include?
Include product/manufacturing cost, inbound freight, import duty, VAT or GST (if non-reclaimable), marketplace fees, payment processing, and allocated ad cost per unit.
How do I calculate ad cost per unit?
Divide total ad spend for the product by units sold: Ad Cost per Unit = Total Ad Spend ÷ Units Sold.
What is a good profit margin for e-commerce?
Net margins of 15–30% are typical. Below 10% is risky after returns and ops costs. Above 30% is strong. Varies by category and platform.