PROFITABILITY / FREE TOOL
See how much of each ecommerce sale remains after product, delivery, payment and marketing costs.
See how much of each ecommerce sale remains after product, delivery, payment and marketing costs.
THE THINKING BEHIND THE NUMBER
Use the selling price and costs for one representative order. The result shows contribution after the costs you enter; it is not your full business operating profit unless every relevant cost is included.
Profit = selling price − discounts − product cost − packaging − shipping − payment fee − returns − other costs − advertising. Margin = profit ÷ net revenue × 100.
For illustration, enter selling price ₹1,000, product cost / cogs ₹300, packaging ₹20, shipping and fulfilment ₹70. With the remaining fields at their starting values, the profit margin is 58.50%. Replace these sample figures with your own numbers before making a decision.
Margin is profit divided by revenue. Markup is profit divided by cost; they are not interchangeable.
Use the result alongside your store analytics, product costs and operating context. If the inputs are estimates, treat the output as an estimate too. Change one input at a time to understand what drives the result.
GO DEEPER
Start with the amount actually collected after seller-funded discounts. Subtract product cost, packaging, fulfilment, payment charges, expected returns and advertising attributed to the order. The remaining contribution can fund salaries, software and other fixed costs; it is not automatically net business profit.
Margin divides profit by net selling revenue, whereas markup compares it with cost. Keep these definitions separate when setting prices or comparing products.
CLEAR ANSWERS
Enter your own business figures in the labelled fields. The result updates immediately and uses this calculation: Profit = selling price − discounts − product cost − packaging − shipping − payment fee − returns − other costs − advertising. Margin = profit ÷ net revenue × 100.
Margin is profit divided by revenue. Markup is profit divided by cost; they are not interchangeable.
No. This calculator is free to use without an account. Its numeric inputs are processed in your browser.
PUT THE INSIGHT TO WORK
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