ROI Calculator Hub

Ecommerce calculator

Ecommerce Profit Calculator

See what remains after product, fulfillment, fees, returns, and advertising.

Reviewed Jul 24, 2026

By the ROI Calculator Hub editorial team

Your assumptions

Estimated result

Estimated net profit

$15,520

That is $16 per order at a 19.6% net margin.

Decision check: Profitable under these assumptions

Net margin
19.6%
Profit per order
$16
Marketing efficiency ratio
4.39:1
Break-even ROAS
2:1
Revenue after returns
$79,050

Three-case comparison

Downside applies an unfavorable 10% change to key drivers. Upside applies a favorable change.

CaseEstimated net profit
Downside-$1,718
Current$15,520
Upside$35,365

Sensitivity check

Estimated primary-result improvement from a favorable 10% change in one driver.

  • Orders+25.5%
  • Average order value+49.3%
  • COGS per order+18.0%
  • Fulfillment per order+5.8%
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Decision scope

What this calculator answers

Revenue and platform ROAS can grow while an ecommerce business loses money. This calculator connects order volume and average order value with returns, product cost, fulfillment, payment fees, advertising, and other operating costs. It produces a period-level profit view plus the unit and marketing metrics needed to diagnose where margin is being consumed.

Transparent math

How the calculation works

Net profit = Realized revenue − COGS − Fulfillment − Fees − Ad spend − Other costs

Gross order revenue is reduced by the expected return rate to estimate realized revenue. Product and fulfillment costs are multiplied by order count, while payment fees are applied to realized revenue. Advertising and other period costs are then subtracted. The model also calculates MER, profit per order, net margin, and the ROAS needed to cover pre-ad contribution.

Worked example

Put the result in context

A store processes 1,000 orders at an $85 average order value. After a 7% return rate it realizes $79,050. Product, fulfillment, payment fees, $18,000 of advertising, and $6,000 of other costs are deducted to show whether the apparent sales volume created profit and how much profit remained per fulfilled order.

Methodology

Make the estimate defensible

  • 01Keep orders, revenue, ad spend, and costs inside the same reporting period.
  • 02Use product and fulfillment costs that scale with the actual order mix.
  • 03Reconcile refunds and fees with settlement data when available.

Interpretation

What counts as a good result?

Use this model to compare periods and scenarios rather than relying on a universal net-margin target. A healthy result must support overhead, tax, working capital, and owner returns. Segment the calculation by product, channel, and new versus returning customer when blended averages hide meaningful differences.

Read before deciding

Limitations

  • Inventory timing, tax, financing, and working-capital effects are not modeled.
  • Average order values and costs can hide large product-level variation.
  • The result is an operating estimate, not a replacement for accrual accounting statements.

How this calculator is reviewed

We test the formula against worked examples, document which costs belong in the model, and state where attribution or timing can distort the result. Read our calculation and editorial methodology.

Common questions

Frequently asked questions

Is ecommerce profit the same as revenue minus ad spend?

No. Product cost, fulfillment, returns, payment fees, apps, labor, and overhead can consume a large share of revenue.

What is MER?

Marketing efficiency ratio is total revenue divided by total marketing spend. It is useful as a blended top-line metric but does not prove profitability.

Should shipping charged to customers be included?

Include customer shipping revenue in average order value and the business-paid fulfillment cost in fulfillment per order.

Why use realized revenue?

Realized revenue removes the expected refunded share so returned orders do not overstate the money available to cover costs.

Sources and further reading

Continue the analysis