What's the difference between gross margin and net profit margin?

Gross margin is revenue minus COGS only. Net profit margin includes ALL variable costs (shipping, fees, packaging, etc.). Our calculator shows net profit margin—the real number that matters for scaling.

What is a healthy profit margin for e-commerce?

A healthy net profit margin for e-commerce typically ranges from 10-30%. Below 10% leaves little room for ad spend or growth. Above 30% gives you strong competitive advantages and scaling power.

How do bundles affect my profit margin?

Bundles can increase or decrease margins depending on how you price them. Use this calculator to ensure your bundle pricing maintains healthy margins while increasing AOV. The goal is more profit per order, not just higher revenue.

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Profit Margin Calculator

Stop guessing your margins. Instantly calculate your real profit per order after all variable costs. The essential tool for scaling Shopify, dropshipping, and DTC brands.

Use flexible $ or % inputs for transaction fees and other costs to match your actual business model.

Profit Per Order

Net profit after all variable costs per order.

$55.10

Net Profit

Profit Margin

Percentage of revenue kept as profit. Target > 20%.

55.10%

Healthy Margin

Total Costs

$44.90

Variable Costs

Unit Economics

Selling Price

The final price the customer pays.

Cost of Goods (COGS)

Cost to produce or acquire one unit.

Shipping & Fulfillment

Includes packaging, shipping, and handling.

Transaction Fees

Payment gateway fees (e.g., Stripe).

Packaging Costs

Custom boxes, inserts, branded materials.

Other Costs

Any extra costs (returns, CS, etc).

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Profit Margin Calculator for E-Commerce

Calculate your real profit per order after all variable costs. Essential for Shopify, dropshipping, and DTC brands to validate pricing and bundle strategies before scaling.

Why Profit Margin Matters

High revenue means nothing if your margins are razor-thin. After COGS, shipping, transaction fees, and packaging, many brands realize they're barely profitable—or worse, losing money on each order.

Use flexible $ or % inputs for transaction fees and other costs to match your actual business model. This calculator shows you the truth before you scale.

Healthy Profit Margin Targets

✕
< 10% MarginDanger zone. Little room for ad spend or growth.
!
10-20% MarginAcceptable, but tight. Limited scaling power.
✓
20-30% Margin (Target)Healthy. Room for ads, operations, and profit.
★
30%+ MarginExcellent. Strong competitive advantages.

Frequently Asked Questions

Profit margin is the amount of money you keep after all variable costs per order. It's critical because it shows if your bundles and upsells remain profitable before you scale. A high AOV means nothing if your margins disappear.