What this calculator tells you
Revenue can look healthy while the order itself loses money. This calculator brings the major variable costs into one view so you can judge the order on profit, not sales volume.
When to use it
Use it before approving a discount, testing a new ad campaign, or listing a product on a new marketplace.
Start with your landed cost, real fee rates, and a pessimistic advertising cost. The result is more useful when the assumptions are honest.
A common mistake is to call gross margin a profit margin while leaving out fulfillment and customer acquisition cost.
Frequently asked questions
Should I include advertising cost?
Yes, when you are testing the profitability of a real order. A margin before ads is useful, but it is not the final margin.
What is a healthy ecommerce margin?
There is no universal number. Many stores need enough margin to cover refunds, overhead, taxes, and future growth. A positive margin above your operating buffer is the practical starting point.
Why is my margin negative?
The total of product cost, shipping, fees, and ad spend is higher than revenue. Adjust the inputs one at a time to find the largest source of loss.