What is e-commerce profit?
E-commerce profit is the money left after subtracting the costs of generating and fulfilling online sales. Revenue alone does not show whether an online store is profitable: product costs, returns, shipping, payment fees, marketing, and operating expenses all affect the result.
How this calculator works
- Gross sales: completed orders Γ average order value.
- Net sales: gross sales less discounts and refunds, each modeled as a percentage of gross sales.
- Variable costs: product and fulfillment cost per order, plus percentage and fixed payment fees.
- Net profit: net sales less variable costs, marketing spend, and other period operating costs.
- Profit margin: net profit divided by net sales.
- Break-even ROAS: net sales divided by the amount left to cover advertising after other costs. It is shown only when a positive break-even target can be calculated.
For example, 500 orders at $60 produce $30,000 in gross sales. Discounts, refunds, and each entered cost reduce that amount to the estimated net profit.
How to use the e-commerce profit calculator
- Choose the currency and enter completed orders and average order value for the same period.
- Estimate discounts and refunds as percentages of gross sales.
- Enter product, shipping, and payment processing costs per order.
- Add total marketing spend and other operating costs for that period.
- Select Calculate store profit and review profit, margin, per-order profit, and break-even ROAS.
- Change one or more assumptions to compare pricing, cost, or advertising scenarios.
Understanding margin and break-even ROAS
Net profit margin is the estimated profit as a share of net sales. Break-even return on ad spend (ROAS) estimates the ad revenue-to-spend ratio at which the entered non-ad costs and net sales leave no profit or loss. It depends on the costs and sales assumptions provided; a positive ROAS target does not guarantee a profitable campaign.
Use consistent time periods and cost definitions. Include all material variable and operating expenses, and compare estimates with your storeβs accounting records.
Frequently asked questions
What costs should I include?
Include product cost, shipping and fulfillment, payment processing, advertising, and operating costs for the period. Add any material marketplace fees, packaging, labor, or software to other costs or adapt the relevant per-order cost to include them.
Is net profit the same as gross profit?
No. Gross profit generally subtracts the direct cost of products from sales. This calculator estimates net profit after the variable costs entered, marketing, and other operating expenses.
How are discounts and refunds modeled?
Each percentage is applied to gross sales, and both amounts are subtracted to estimate net sales. This simplified model does not calculate the returned inventory value or fees refunded by a payment provider.
What does break-even ROAS mean?
It is the estimated ratio of sales revenue to ad spend needed for the entered business to break even, given the other costs and net sales assumptions. Actual campaign results can differ due to attribution, timing, and changing costs.
Does the result include taxes?
No. Taxes, duties, financing costs, and any costs not entered are excluded. Consult your accounting records or a qualified professional for tax and reporting figures.