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Home/E-Commerce/Product Profit Margin Calculator

🛒 E-Commerce Tools

Product Profit Margin Calculator

Calculate true product profit after COGS, shipping, and payment fees.

Product details

Stripe/PayPal ≈ 2.9%

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Fill in the details and click calculate.

Frequently Asked Questions

What costs should be included in product profit margin?

Landed product cost (unit + freight + duties), platform and payment fees, packaging, shipping subsidy, and returns allowance. Skipping any of them is how "profitable" stores run out of cash.

What is a healthy margin for an e-commerce product?

Aim for 60%+ gross margin before advertising if you buy paid traffic, since ads commonly consume 20–35% of revenue. Organic-first brands can survive on less.

How do returns affect true margin?

Each return costs shipping both ways plus often an unsellable unit. At a 10% return rate, add roughly 3–7 points of cost to every sale depending on category — apparel worst of all.

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