Profit Margin Calculator
Work out your real margin on each order after product cost, shipping, packaging, payment and platform fees, or find the price that hits a target.
Your numbers
Your result · updates as you type
Net profit margin
47.5%
You keep $21.40 of every $45.00 order once product, shipping, packaging and fees are paid. Gross margin (price minus product cost only) is 66.7%.
- Gross margin
- 66.7%
- Net margin
- 47.5%
- Net profit per order
- $21.40
Remember that ad spend still comes out of this. Compare net profit per order with what you pay to win an order.
Breakdown
- Selling price
- $45.00
- Customer pays
- $45.00
- Product cost
- −$15.00
- Shipping and packaging
- −$7.00
- Payment and platform fees
- −$1.61
- Net profit
- $21.40
- Markup on product cost
- 200%
Gross margin and net margin
Most margin calculators stop at price minus product cost. That's gross margin, and it flatters an online store, because every order also pays for shipping, packaging and fees. This calculator shows both, so you can see the gap.
Example: the default numbers
- Selling price (free shipping)
- $45.00
- Product cost
- $15.00
- Shipping + packaging
- $6.00 + $1.00
- Payment fee
- 45 × 2.9% + $0.30 = $1.605
Net profit = 45 − 15 − 7 − 1.605 = $21.395, shown as $21.40. Net margin = 21.395 ÷ 45 = 47.5%. Gross margin is (45 − 15) ÷ 45 = 66.7%, almost 20 points higher.
Switch to Price for a target margin to work backwards. The calculator solves for the price where profit after every cost equals your target share of what the customer pays.
Tracking margin in Shopify and WooCommerce
- 01
Shopify
Add a Cost per item to each product in its pricing details. Shopify uses it to track your costs and profit, so your reports match the gross margin here.
- 02
WooCommerce
Turn on the core cost feature at WooCommerce → Settings → Advanced → Features → Cost of Goods Sold. A cost field then appears on the product's General tab. It doesn't feed WooCommerce Analytics yet, so keep this calculator for net margin.
- 03
Fees
Use your real rate. On Shopify, check your plan's Shopify Payments rate. On Etsy, put the 6.5% transaction fee in Marketplace or platform fee, and the 3% + $0.25 processing fee plus the $0.20 listing fee in the payment fields. The Etsy preset does this for a US seller.
Common mistakes
- Mixing up margin and markup. A 50% markup is only a 33.3% margin. Use the markup calculator to convert.
- Forgetting free shipping. If you absorb shipping, it comes straight out of margin. Enter it in Shipping you pay.
- Leaving out ads. Net margin here is before marketing. For profit after ad spend, use the contribution margin calculator.
Questions people ask
What's a good profit margin for an online store?
It depends on the category and how much you spend on ads. Compare net margin (after shipping and fees) with what it costs you to win an order, rather than chasing a single benchmark.
Is profit margin the same as markup?
No. Margin is profit divided by the selling price. Markup is profit divided by cost. A product that costs $15 and sells for $45 has a 66.7% gross margin and a 200% markup.
Should shipping be in the margin?
Yes, for net margin. What you pay the carrier is a cost of the order. What the customer pays for shipping counts as revenue, so enter both.
Why is my net margin so much lower than my gross margin?
Shipping, packaging and fees are often 10 to 25 points of the price on smaller orders. Raising order value spreads these fixed costs and closes the gap.
Related tools
Want this builtinto your store?
I'm Emmanuel, a Shopify and WooCommerce developer. If this tool pointed at something you'd rather have fixed for you (a faster store, cleaner product data, a migration, a custom feature), send me a note.
Emmanuel Asika
Shopify & WooCommerce developer, Dublin
I build and fix online stores: new builds, migrations, speed, SEO and the custom bits apps can't do.
Last reviewed 30 September 2026.
Sources: Shopify: Pricing (US) · Etsy: Fees & Payments Policy · Etsy: Payments Policy (processing fees by country) · Shopify Help Center: Product pricing · WooCommerce docs: Cost of Goods Sold (COGS)