Ecommerce profit margin calculator
See what you really make per order after product cost, shipping, payment fees, refunds and ads — and what that means per month.
- Profit per order before ads
- $23.79
- Margin before ads
- 59.6%
- Markup on cost
- 343.9%
- ROAS Meta would show you
- 2.85
- Revenue per month
- $11,985.00
- Net profit per month
- $2,937.89
At a 2.85 ROAS you make money — but look at what's really left.
Calculated on revenue after VAT/tax, minus product, shipping, fees, refunds and ads.
Get this calculated for you every day with ProfitFlyConnect Shopify, Meta and TikTok and see your real net profit every day. 3-day free trial.
Gross margin, net margin and markup
Gross margin is what's left after product cost. Net margin is what's left after everything: product, shipping, fees, refunds and ads. Markup is how much you add on top of product cost.
Plenty of stores look at markup ("I buy at 9 and sell at 40") and think they're doing great. Net margin is what pays the bills.
The formula
Net profit = revenue after tax − product − shipping − fees − refunds − ads
Net margin is that profit divided by revenue after tax. The calculator also shows the ROAS Meta would report and a monthly projection.
Do it every day, automatically
This calculator covers one product. Your store has many products, countries and an ad spend that changes daily. ProfitFly connects Shopify, Meta and TikTok and calculates your real net profit every day.
FAQ
What is a good profit margin for ecommerce?
Many stores running paid ads aim for a 10–20% net margin after ads. Below 5%, any rise in cost per sale pushes you into a loss.
What's the difference between margin and markup?
Margin is based on the selling price, markup on cost. Buying at $10 and selling at $20 is a 100% markup and a 50% gross margin.
How do I calculate margin for my whole store?
You'd need this calculation for every order, with each day's ad spend. ProfitFly does it automatically once you connect Shopify, Meta and TikTok.