Decision Calculator
Online Store Profit Calculator
Estimate ecommerce profitability by modeling product costs, shipping, platform fees, payment processing, advertising spend, and margins.
Revenue input method
Cost of goods sold
Fulfillment & Shipping
Platform & Payment Fees
Marketing & Advertising
Other Monthly Costs
Key insight
This ecommerce model generates about $7K/month in profit with a strong 28.5% margin.
Net profit
$7K/mo
Break-even revenue
$8K/mo
Key insight
This ecommerce model generates about $7K/month in profit with a strong 28.5% margin.
Net profit
$7K/mo
Break-even revenue
$8K/mo
Key metrics
Monthly revenue
$25,000
Gross profit
$15,000
Contribution profit
$7,635
Net profit
$7,135/mo
Net profit margin
28.5%
Break-even revenue
$8K/mo
Profit vs. Revenue
The chart shows how net profit changes as revenue scales. The highlighted segment on the current revenue line shows your profit, and the dot marks the break-even point.
Revenue to profit waterfall
Cost breakdown
COGS
$10,000
40.0% of revenue
Gross margin
60.0%
Fulfillment costs
$3,640/mo
Fees (payment + platform)
$725/mo
2.9% of revenue
Advertising
$3,000/mo
12.0% of revenue
Software + Other
$500/mo
Understanding ecommerce margins
Online store margins are often tighter than they appear. After accounting for product costs (COGS), shipping, packaging, payment processing fees, marketplace commissions, and advertising, many ecommerce businesses operate on net margins of 5–15%. High-volume stores can survive on thin margins, while niche or premium brands typically need higher markups to remain profitable.
Break-even revenue shows the minimum monthly sales needed to cover all costs. Below this point, every dollar of sales still doesn’t cover fixed and variable expenses. Above it, additional contribution margin drops to the bottom line.
What drives online store economics
Product costs and advertising usually dominate ecommerce economics. COGS typically ranges from 25–60% of revenue depending on category and sourcing. The remaining margin must cover fulfillment, platform fees, and advertising before any profit remains.
- COGS — Directly tied to product sourcing. Dropshipping: 60–80%. Private label: 25–40%. Handmade: 30–50%.
- Advertising — Often the largest variable cost after COGS. Meta, Google, and TikTok ads can consume 15–35% of revenue for customer acquisition.
- Platform fees — Amazon takes 8–15%, Etsy charges ~6.5% transaction fees, Shopify has payment processing costs of ~2.9% + 30¢.
This calculator is for educational purposes only and does not constitute financial or business advice. Results are estimates based on the assumptions you provide. They do not account for seasonality, taxes, returns, refunds, or individual circumstances. Actual results will vary. Consult a financial advisor or accountant for personalized guidance.