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This ecommerce margin calculator helps you find your true profit after all selling costs. Enter sale price, product cost, shipping, payment fees, and marketplace charges. The tool shows exact profit and margin so you can price products with confidence.
Ecommerce margin shows how much profit you keep from each online sale after deducting all costs. This includes product cost, shipping, payment gateway fees, and marketplace commissions. It gives a clear view of real profitability, not just revenue.
An ecommerce margin calculator measures actual profit from online sales. It accounts for platform fees, logistics costs, and transaction charges that are often ignored. This helps sellers understand true margins and avoid underpricing products.
First, enter the sale price. This is the amount the customer pays for the product on your ecommerce store or marketplace.
Next, add the product cost. This includes manufacturing cost, supplier price, or inventory purchase cost.
Then, enter payment gateway fees. These are charges taken by payment processors for each transaction.
After that, add marketplace fees if applicable. This includes commissions charged by platforms like marketplaces or aggregators.
Next, include shipping and packaging costs. These costs directly impact profit and should always be included for accurate margins.
If you have any additional expenses, add them under other costs. This may include returns, handling, or fulfillment charges.
Finally, the calculator subtracts all costs from the sale price and shows your net profit and margin percentage instantly.
Use an ecommerce margin calculator when you want to understand the real profit behind each sale. It is especially useful before launching a new product, as it helps you set a price that covers all costs and still leaves room for profit.
You should also use this tool before running discounts, sales campaigns, or paid ads. It shows how price cuts, shipping costs, and platform fees impact your margins so you avoid selling at a loss.
Ecommerce sellers can use the calculator when reviewing existing products. It helps identify low-margin items that need price updates, cost reduction, or removal from the catalog.
This calculator is also helpful when scaling your business. Knowing exact margins ensures that higher order volumes lead to higher profits, not hidden losses.
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