E-commerce Profit Calculator

What is an e-commerce profit calculator?

An e-commerce profit calculator shows how much money you actually keep from each sale after every cost is paid. A selling price of ₹299 can look healthy until product cost, shipping, marketplace commission, ads and tax are taken out. This tool does that subtraction for you, instantly, so you can check a price before you list a product.

How to calculate product profit

Start with the selling price and subtract every cost tied to that single order. In simple terms:

Net Profit = Selling Price − (Product Cost + Packaging + Shipping + Marketplace Fee + Advertising + GST/Tax + Other Costs)

Percentage-based costs, such as a 10% marketplace fee, are calculated on the selling price. Fixed costs, such as packaging, stay the same on every order. Once you know profit per order, multiply by the number of orders to see your total profit for a day, week or campaign.

What costs should sellers include?

• Product cost: what you pay to buy or make one unit.
• Packaging: boxes, mailers, tape, inserts and labels.
• Shipping: courier charges, including weight slabs and return-to-origin costs if they apply to you.
• Marketplace fees: commission, fixed closing fees and payment-collection charges.
• Advertising: ad spend divided by the orders it produced.
• GST / tax: any tax you pay out of your own margin.
• Other costs: software, storage, staff time, returns and damages.

What is profit margin?

Profit margin is your profit shown as a percentage of the selling price. A ₹60 profit on a ₹300 sale is a 20% margin. Margin makes it easy to compare products at different price points and to spot items that look busy but earn very little.

What is break-even price?

Your break-even price is the lowest selling price at which you neither make nor lose money. Because fees and tax grow as the price grows, the answer is not simply your total costs. The calculator works it out by dividing your fixed costs by what is left of each rupee after percentage-based charges. Selling below this price means you lose money on every order.