Ecommerce profit margin calculator
This ecommerce profit margin calculator shows your real profit per order after product cost, VAT, shipping, packaging, payment fees and advertising. Enter your selling price and costs to see your net profit, profit margin and markup, so you can price products for profit.
Last updated: October 2026
Net profit per order
Rates checked September 2026. Figures are estimates for planning, not financial advice. Check Shopify's own pricing page before deciding.
How to use it
- Enter the price customers pay, and whether it includes VAT.
- Add what each product costs you, plus packaging and shipping.
- Enter your payment fee and average ad cost per order (0 if you don't advertise).
- Read your profit, margin and markup. Try different prices to find a healthy margin.
How it works
If you're VAT registered, 20% VAT is removed from the price first, because it belongs to HMRC.
Net profit = (price excluding VAT + shipping charged) − product cost − packaging − shipping − payment fees − ad cost.
Margin = net profit ÷ revenue excluding VAT. Markup = (price excluding VAT − product cost) ÷ product cost.
The 25p per-transaction fee on Shopify Payments is included in the payment fee line.
Frequently asked questions
What is a good profit margin for ecommerce?
It varies by product, but many small UK stores aim for a net margin of at least 10% to 20% after ads. Read how to price for profit.
What's the difference between margin and markup?
Margin is profit as a share of the selling price. Markup is profit as a share of the cost. A 100% markup is a 50% gross margin.
Should I include VAT in my prices?
UK consumer prices should be shown including VAT. Read more.
How do I know my ad cost per order?
Divide your monthly ad spend by the number of orders from ads. The ROAS calculator helps too.
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