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E-commerce Profit Calculator

Find out what each order really earns you. Enter your price and costs – the calculator shows your contribution margin, profit margin and the price you need, including marketplace fees, advertising, returns and VAT.

In short: Contribution per order = expected net revenue (price without VAT, minus returns) − product, shipping, fees, advertising and return costs; margin = contribution ÷ expected net revenue.

  • Free, no sign-up
  • Net & gross VAT logic
  • 17 countries
  • Shareable link
Country & VAT

Sets the VAT rate and currency of the country where the sale is taxed.

%
Off for small-business exemptions: you charge no VAT, and VAT on your costs becomes a cost.

Many products? Check your whole catalogue

Upload a CSV: automatic data check plus margin and break-even price for every product – processed in your browser.

Analyse a CSV

How the calculator works

The calculator answers one question: how much does a single order contribute after every cost that comes with it? It works with expected values, so returns are already priced in. The result is the contribution margin (in German: Deckungsbeitrag) – the amount that is left to cover your fixed costs and profit.

Assumptions

  • Everything is per order, one unit per order. All amounts are expected values for a single order containing one unit. For multi-unit orders, enter the costs for the whole order and the order total as the selling price.
  • Net revenue is the basis. If you are VAT-registered, the VAT you charge belongs to the tax office. Your revenue is the selling price excluding VAT. Margin = contribution ÷ expected net revenue.
  • Input VAT on costs. VAT-registered sellers can reclaim the VAT on their purchases, so only net costs count. If you are not VAT-registered (e.g. small-business exemption), you charge no VAT – but the VAT you pay on costs is a real cost. The calculator applies the selected VAT rate to costs in both cases.
  • Fees are based on the price the customer pays. Marketplace and payment fees are calculated as a percentage of the gross selling price (incl. VAT), plus any fixed fee. They are treated as final costs: payment fees are usually VAT-exempt and marketplace fees to VAT-registered sellers are usually reverse-charged.
  • Returns. For returned orders, the revenue is refunded, the product goes back into stock, but shipping, fees, advertising and other costs are lost. Use “cost per return” for return labels, handling and write-offs of goods that cannot be resold.
  • Contribution margin, not net profit. The result is the contribution margin per order (variable costs only). Fixed costs such as rent, salaries, software subscriptions and income tax are not included – they must be covered by the total contribution of all orders.

Formulas

Net pricegross price ÷ (1 + VAT rate)
Expected net revenuenet price × (1 − return rate)
Product costpurchase price × (1 − return rate)
Feesfee % × gross price + fixed fee
Return costcost per return × return rate
Contributionexpected net revenue − all costs
Margincontribution ÷ expected net revenue
Break-even priceprice-independent costs ÷ ((1 − return rate) ÷ (1 + VAT) − fee %)
Price for target margin mprice-independent costs ÷ ((1 − return rate) × (1 − m) ÷ (1 + VAT) − fee %)

For sellers without VAT registration, the VAT factor on revenue is 1 and VAT on costs is added to the costs instead.

Examples

Marketplace seller in Germany

A phone case sells for €19.99 incl. 19 % VAT on a marketplace that takes 15 %. Purchase price €3.20, shipping €1.90, €1.50 ads per order, 5 % returns. The calculator shows a contribution of about €6.52 per order (41 % margin) – and that the price could drop to about €9.93 before the product stops covering its variable costs.

Marketplace seller in Austria (20 % VAT)

A desk lamp sells for €29.90 incl. 20 % VAT on a marketplace with 15 % commission. Purchase price €9.00, shipping €4.60, €2 ads per order, 6 % returns at €4 each. Each order leaves about €3.64 contribution – a margin of just under 16 %. Below about €24.16 every order loses money; a 30 % margin would need a price of about €38.41.

Own online shop with heavy advertising

A skincare set sells for €49 incl. VAT in your own shop: purchase price €12, shipping €4.90, payment fees 1.5 % + €0.25, 8 % returns at €5 each – and €14 ad spend per order. The margin is only about 17 %; a 30 % target margin would need a price of about €58. A clear signal to lower the cost per acquisition or raise the price.

Small business without VAT registration

A seller using a small-business VAT exemption sells handmade jewellery for €35. Switch off “VAT-registered”: the full €35 counts as revenue, but VAT paid on materials and shipping is added to the costs.

Net vs. gross: why it matters

The most common mistake in margin calculations is mixing gross and net amounts. If a product sells for €39.99 including 19 % VAT, only €33.61 is revenue – the remaining €6.38 is passed on to the tax office. Comparing the gross price with net costs overstates your margin by several percentage points. This calculator keeps both apart: enter amounts the way you know them and set the switches accordingly.

Common mistakes and how to fix them

Comparing the gross price with net costs

Why it matters: A €39.99 price including 19 % VAT is only €33.61 of revenue. Mixing gross and net overstates the margin by several percentage points.

Fix: Enter amounts the way you know them and set “Price includes VAT” and “Costs include VAT” accordingly – the calculator separates net and VAT for you.

Leaving out returns

Why it matters: Returned orders still cost shipping, fees and advertising. A product with a 15 % return rate earns much less than its best-case margin suggests.

Fix: Enter your expected return rate and the cost per return (label, handling, write-offs). The result is then an expected value per order.

Forgetting payment fees

Why it matters: Card and wallet payments usually cost a percentage of the order plus a fixed amount. On small orders the fixed part alone can eat a large share of the margin.

Fix: Enter your payment provider’s percentage and fixed fee from its price list or your last payout statement.

Confusing margin and markup

Why it matters: A 50 % markup on cost is only a 33 % margin on the selling price. Planning with markup makes prices look more profitable than they are.

Fix: Margin = contribution ÷ net revenue (shown by the calculator). Markup = profit ÷ cost. Use the target-margin field to get the price you need.

Pricing at the break-even point

Why it matters: The break-even price only covers the variable costs of an order. Rent, software, salaries and your own income still need to be paid from the contribution.

Fix: Treat break-even as the absolute lower limit. Set a target margin that covers your fixed costs and use the price the calculator suggests.

Using total ad spend instead of cost per order

Why it matters: Entering a monthly ad budget as a per-order cost makes every product look like a loss; leaving ads out makes it look better than it is.

Fix: Divide ad spend by the orders it brought in (cost per acquisition) and enter that amount as advertising per order.

Frequently asked questions

What is the difference between contribution margin and profit?

The contribution margin is what one order leaves over after all variable costs (product, shipping, fees, ads, returns). Your profit is the sum of all contribution margins minus fixed costs such as rent, software, salaries and taxes on income. A product with a negative contribution margin loses money with every sale – no matter how many you sell.

Should I enter prices with or without VAT?

Enter the selling price the way you know it and tick “Price includes VAT” accordingly – most B2C prices include VAT. Costs are usually entered net (as on supplier invoices for VAT-registered businesses). If you only know gross costs, switch on “Costs include VAT” and the calculator removes the VAT for you.

What profit margin is good for e-commerce?

It depends on your category and fixed costs, but many online sellers aim for a contribution margin of 20–40 % after advertising. Below roughly 15 %, small changes in ad costs or return rates can quickly make a product unprofitable.

How are returns included?

The return rate reduces the expected revenue and product cost (returned goods go back into stock), while shipping, fees, advertising and the cost per return still apply. This makes the result an expected value per order rather than a best case.

What is the break-even price?

The break-even price is the lowest selling price (incl. VAT, as the customer sees it) at which an order still covers all its variable costs. Percentage fees grow with the price, so the calculator solves for it exactly instead of simply adding up costs.

Does the calculator work for Amazon, eBay, Etsy or Shopify?

Yes – enter the platform’s fee percentage and fixed fee per order. For Amazon and Shopify there are dedicated calculators with the official fee tables; calculators for other platforms are only published once their fees are verified.

Is my data stored?

No. All calculations run in your browser. Your inputs are not sent to our servers. You can share a result via a link – the inputs are then part of that link.

Related tools and guides

Embed this calculator on your website

Free for blogs, agencies and shops: copy the code into your page. The calculator adapts its height automatically and stays up to date.

<iframe src="https://mysolute.com/embed/en/ecommerce-profit-calculator" title="E-commerce Profit Calculator – MySolute" width="100%" height="900" style="border:0;max-width:100%" loading="lazy"></iframe>
<script>addEventListener("message",function(e){if(e.origin!=="https://mysolute.com"||!e.data||e.data.type!=="mysolute-embed-height")return;document.querySelectorAll('iframe[src^="https://mysolute.com/embed/"]').forEach(function(f){if(f.contentWindow===e.source)f.style.height=e.data.height+"px"})});</script>
<p style="font-size:13px">Calculator by <a href="https://mysolute.com/tools/ecommerce-profit-calculator">MySolute</a></p>

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Sources

Fees, rates and rules change. We check the official sources listed here regularly – the date shows our last check.

Platform-specific calculators

Amazon and Shopify have their own calculators with fee tables from the official pricing pages. Further platforms follow only once their fees and tax rules have been verified. For other platforms, enter the fees above.

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