E-Commerce Profit Calculator
What Is This Calculator?
An e-commerce profit calculator reveals your true per-order profitability by subtracting every cost most sellers overlook: product cost, shipping, payment processing fees (2.9% + $0.30 per transaction on Stripe/PayPal), platform fees (15% on Amazon, 6.5%+30c on Etsy, 2% on Shopify Payments), return costs (reverse shipping + restocking + lost inventory), and customer acquisition cost. Many e-commerce businesses look profitable on a revenue basis but are actually losing money on every order once all costs are factored in. This is especially common in businesses with high return rates (apparel averages 20-30%), free shipping offers that absorb $6-$12 per order, and heavy reliance on paid advertising. The calculator strips away the vanity metrics and shows you the only number that matters: how many dollars of actual profit land in your account for each order you fulfill. Shopify's internal data shows that the average store has a 10% net margin after all costs, but the top quartile achieves 20%+ through tight cost control and premium pricing. The difference almost always comes down to understanding these per-order economics deeply rather than looking only at topline revenue. If your contribution margin is negative — meaning you lose money on every order before fixed costs — then scaling faster actually makes the problem worse. This calculator catches that scenario before it becomes a cash flow crisis.
How to Use This Calculator
Enter Your Average Order Value
Input All Product and Fulfillment Costs
Add Your Return Rate
Include Marketing Cost Per Order
Key Concepts
Customer Acquisition Cost (CAC)
Total marketing spend divided by new customers acquired. A healthy DTC e-commerce CAC is 20-30% of first-order AOV. If your CAC exceeds first-order profit, you must recoup costs through repeat purchases (LTV).
Contribution Margin
Revenue minus all variable costs (COGS, shipping, processing, returns, marketing). This is the profit each order contributes toward fixed costs like rent, software, and salaries. If contribution margin is negative, selling more units makes the problem worse.
LTV:CAC Ratio
Lifetime customer value divided by acquisition cost. E-commerce benchmark is 3:1 or higher. Below 2:1, the business model is unsustainable. Above 5:1, you are likely under-investing in growth.
Blended ROAS
Revenue divided by total ad spend across all channels. A 4x blended ROAS means $1 of ads generates $4 of revenue. After all costs, you typically need 3-4x ROAS minimum to be profitable in e-commerce.
Expert Insights
Calculate your "fully loaded" break-even AOV: the minimum order value at which you make $0 profit after every cost. If your average order is within 20% of this number, your margin of safety is dangerously thin. Raise prices, reduce COGS, or cut marketing costs.
Frequently Asked Questions
Results are estimates for educational purposes only. Actual amounts may vary based on your specific financial situation, market conditions, and other factors. This calculator does not constitute financial advice.
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