Profit Margin Calculator for Online Stores
Enter your price, product cost, shipping, payment fees and ad spend per order to see your real profit per order. You also get net margin, markup and the break-even ROAS your ads must beat.
Results
- Profit per order
- $13.54
- Net profit margin
- 33.8%
- Markup on product cost
- 233.3%
- Break-even ROAS
- 1.86×
- Payment fees per order
- $1.46
- Left per order before ads
- $21.54
You can spend up to $21.54 per order on ads before profit hits zero.
Frequently asked questions
How do you calculate profit margin?
Net profit margin is profit divided by the selling price. Profit is the price minus product cost, shipping, payment fees and ad spend per order.
What is the difference between margin and markup?
Markup is profit over cost: (price minus cost) divided by cost. Margin is profit over price. A 100% markup is a 50% margin.
What is break-even ROAS?
Break-even ROAS is the return on ad spend at which ads exactly use up the money left after product, shipping and fees. We calculate it as price divided by what is left per order before ads. Any ROAS above it is profit.
Which payment fee should I enter?
Use your card processing rate. On Shopify Payments the US online rate is 2.9% + 30 cents on Basic, 2.7% + 30 cents on Grow and 2.5% + 30 cents on Advanced.
Related tools
Sources and assumptions
Taxes, returns and overheads are not included.
Estimates for planning, not financial advice. Check current rates with your provider.