E-Commerce Profit Calculator
Break down profit per order after COGS, shipping, returns, processing fees, and marketing. See your true margins and monthly profitability.
E-Commerce Profit Inputs
Net Profit / Order
$18.92
Benchmark: $5-$30Net Margin
29.1%
Benchmark: 10-20%Monthly Profit
$9,458
$113,490/year
Est. Customer LTV
$86.67
1.3 avg orders/customer
Per-Order Breakdown
| Line Item | Per Order | % of AOV |
|---|---|---|
| Average Order Value (Revenue) | $65.00 | 100.0% |
| COGS | -$22.00 | 33.8% |
| Shipping | -$5.00 | 7.7% |
| Returns (8%) | -$5.20 | 8.0% |
| Payment Processing (2.9%) | -$1.88 | 2.9% |
| Marketing (CAC) | -$12.00 | 18.5% |
| Net Profit / Order | $18.92 | 29.1% |
Monthly Summary
| Metric | Monthly | Annual |
|---|---|---|
| Revenue | $32,500 | $390,000 |
| Gross Profit | $21,500 | $258,000 |
| Gross Margin | 66.2% | |
| Net Profit | $9,458 | $113,490 |
| Net Margin | 29.1% | |
| Order Volume | 500 | 6,000 |
How to Use This Calculator
Model your e-commerce unit economics in three steps.
Enter Order Economics
Input your average order value, COGS per order, shipping cost, and monthly order volume. These form the foundation of your unit economics.
Add Variable Costs
Include your return rate, payment processing fee percentage, and customer acquisition cost per order. These hidden costs often erode margins.
Analyze Profitability
See per-order profit breakdown, monthly projections, margin analysis, and customer LTV estimates based on your repeat purchase rate.
Frequently Asked Questions
Common questions about e-commerce profitability and unit economics.
What is a good profit margin for e-commerce?+
Healthy e-commerce businesses target 40-60% gross margins and 10-20% net margins after all variable costs. Direct-to-consumer brands with strong supply chains often hit the higher end, while marketplace sellers and dropshippers operate at thinner margins due to platform fees. If your net margin is below 10%, your cost structure needs attention before you scale. For broader context, see our profit margins by industry benchmarks.
How do you calculate e-commerce unit economics?+
E-commerce unit economics measures profitability at the individual order level. Start with your average order value, then subtract COGS, shipping, return costs (return rate times AOV), payment processing fees, and customer acquisition cost. The result is your net profit per order. Multiply by monthly order volume for total monthly profit. A positive unit economics means every additional order adds profit. A negative one means scaling makes losses worse. Our guide on unit economics explained covers the full framework for any business model.
What costs should I include in COGS for e-commerce?+
E-commerce COGS should include: product cost (wholesale or manufacturing), packaging materials, direct labor for fulfillment, import duties or tariffs, and any per-unit fees from your supplier. Do not include shipping to customers (that is a separate line item), marketing, or platform fees in COGS. Keeping COGS clean makes your gross margin meaningful and comparable to industry benchmarks. For more on cost allocation, see our unit economics guide which covers COGS definitions across business types.
Why Per-Order Profitability Matters for E-Commerce
Revenue growth means nothing if every order loses money. The most dangerous phase for an e-commerce business is scaling with negative unit economics, because marketing spend accelerates losses rather than building a sustainable business. This calculator forces you to confront the real profit per order after every cost is accounted for.
The costs that surprise most e-commerce operators are returns and payment processing. An 8% return rate on a $65 AOV adds $5.20 in cost per order across your entire volume, not just on returned orders. Payment processing at 2.9% adds another $1.89. Combined with COGS, shipping, and marketing, these costs can consume 70-80% of your order value before you see a dollar of profit. Our guide to unit economics explained covers how to structure these costs for clear decision-making.
Customer acquisition cost is often the largest variable cost per order, especially for brands relying on paid advertising. If your CAC exceeds your gross profit per order, you are losing money on every new customer unless they come back and buy again. That is why the repeat purchase rate and LTV estimate matter. A business with a $12 CAC and $15 gross profit per order looks thin on paper, but if 25% of customers buy again, the effective CAC drops and lifetime profit increases substantially. For a deeper look at this dynamic, see our analysis on profit margins by industry.
The monthly summary view in this calculator helps you translate per-order economics into the numbers that actually matter for your business: total monthly profit, annual run rate, and whether your current volume is sustainable. Pair this with the burn rate calculator to see how your e-commerce margins affect overall runway, or use the profitability calculator for a complete business-level view of when you reach break-even.
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