What is the Ecommerce Margin Calculator?
An ecommerce profit margin calculator shows the three margins online sellers track: gross margin = (price − product cost) ÷ price; contribution margin, after shipping, platform and payment fees and marketing; and net margin, after overhead. It also gives markup on cost and break-even ROAS.
Example: a $50 product costing $18, with $6 shipping, 6% fees, $9 marketing and $2 overhead per order, has a 64% gross margin ($32), a 28% contribution margin ($14) and a 24% net margin ($12). Markup is 178% and break-even ROAS is 2.17×.
How to use the Ecommerce Margin Calculator
- Enter Selling price and Product cost (COGS).
- Add Shipping & packaging, Platform + payment fees (%) and Marketing per order.
- Add Overhead per order — monthly overheads divided by monthly orders.
- Compare net margin with gross margin, contribution margin, markup and break-even ROAS; the bar shows where each dollar goes.
Why use AnyShift's Ecommerce Margin Calculator
Instant resultsNumbers update as you type — no submit button, no page reloads.
Formula shownEvery result shows how it was calculated so you can check the maths.
Editable assumptionsRates, fees and defaults are pre-filled but always adjustable.
Private by designCalculations run in your browser. Nothing is stored or sent.
Popular use cases
- Checking a new product’s margins before listing it
- Explaining the difference between gross and net margin to a partner
- Finding which cost line squeezes profit the most
- Setting a break-even ROAS for ad campaigns
The three ecommerce margins
| Margin | Formula | Example ($50 price) |
|---|---|---|
| Gross margin | (Price − COGS) ÷ price | 64% ($32) |
| Contribution margin | (Gross profit − shipping − fees − marketing) ÷ price | 28% ($14) |
| Net margin | (Contribution − overhead) ÷ price | 24% ($12) |
| Markup on cost | Gross profit ÷ COGS | 178% |
For a quick single-margin check on any product, use the profit margin calculator.
Frequently asked questions
What is the difference between margin and markup?
Margin is profit ÷ price; markup is profit ÷ cost. A 50% margin equals a 100% markup, and the 64% gross margin in the example is a 178% markup. See the markup calculator to convert between them.
What is a good ecommerce gross margin?
It depends on the model: own-brand and private-label products often run 50% or more, while resellers of commodity goods may work on 20–30%. What matters is that contribution margin leaves room for ads and overhead.
What is contribution margin in ecommerce?
The share of the price left after all variable costs of an order — product, shipping, fees and marketing. It pays for overhead and profit; with the defaults it is 28%, or $14 per order.
How do I calculate net profit margin for an online store?
Net margin = (price − product cost − shipping − fees − marketing − overhead) ÷ price. Spread fixed costs such as software, rent and salaries across monthly orders to get the overhead-per-order figure.
How is break-even ROAS worked out here?
Price ÷ (contribution + marketing), because marketing is the cost ads are allowed to consume. With the defaults that is $50 ÷ $23 = 2.17×.
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Last reviewed: Built for: United States, United Kingdom, Canada, Australia Part of Ecommerce & Sellers