Enter the fee rates shown in your own seller account. Marketplace fees change and differ by category and country, so we do not fill them in for you. Nothing you type is sent to us.
| Product cost | |
| Percentage fees and returns allowance | |
| Fixed fee, shipping, packaging, ads | |
| Sales tax / VAT in the price |
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Know your profit on every sale
One calculation is a start. In the free Daily Sales Record app you add your products once, record each sale, and see your totals and reports every day, on your phone.
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How to calculate your profit as an online seller
- Start with the price the customer pays.
- Subtract what the product cost you.
- Subtract the marketplace's percentage fees (commission, payment fee) and any fixed fee per order.
- Subtract the costs you pay yourself: shipping, packaging and advertising for this order.
- Allow a share for returns and refunds, and take out the sales tax or VAT if it is included in the price.
- What is left is your profit per order. Divide it by the price to get your margin.
The formulas
- Tax in the price = Price × Tax % ÷ (100 + Tax %) (only if the price includes tax)
- Profit = Price − Product cost − Percentage costs − Fixed fee − Shipping − Packaging − Ads − Tax in the price
- Margin = Profit ÷ Price · Markup = Profit ÷ Product cost
- Price needed for a target margin = (Product cost + Fixed fee + Shipping + Packaging + Ads) ÷ (1 − fee share − tax share − target margin), where fee share = (Commission % + Payment fee % + Returns %) ÷ 100 and tax share = Tax % ÷ (100 + Tax %). Set the target margin to 0 for the break-even price.
Worked example (example numbers, not real marketplace rates)
Product cost 10.00 · shipping paid by seller 1.50 · packaging 0.50 · fixed fee 0.30 · ads 0 · commission 8% · payment fee 2.5% · returns allowance 2% · tax 0%
| Costs you pay in money: 10.00 + 1.50 + 0.50 + 0.30 | 12.30 |
| Percentage fees: 8% + 2.5% + 2% | 12.5% of the price |
| Break-even price = 12.30 ÷ (1 − 0.125) | 14.06 |
| Price for a 20% margin = 12.30 ÷ (1 − 0.125 − 0.20) | 18.22 |
Check at 18.22: percentage fees = 18.22 × 0.125 = 2.28; profit = 18.22 − 12.30 − 2.28 = 3.64; margin = 3.64 ÷ 18.22 = 20.0% (rounded).
Selling at 15.00 instead: fees 1.875 (about 1.88); profit = 15.00 − 12.30 − 1.875 = 0.825 (about 0.83); margin 5.5%.
Frequently asked questions
Why is my profit lower than I expected?
Fees are charged on the whole price, and shipping, packaging, ads and returns are easy to forget. Add every cost for one order, not only the product cost.
What is the difference between margin and markup?
Margin is profit divided by the selling price; markup is profit divided by what the product cost you. A product bought for 10 and sold for 15 has a markup of 50% but a margin of 33.3%.
Where do I find my marketplace fee rates?
In your seller account (fee schedule or fee calculator for your category and country). We do not fill them in because they change and differ by category, so use your own current numbers.
How do I include advertising?
Divide your ad spend by the orders it brought in and enter that amount in "Ads cost per order". If you do not advertise, leave it at 0.
What is a returns and refunds allowance?
If about 4 in 100 orders come back and you lose the sale (and sometimes the product), enter 4%. It spreads that loss over every order.
Should the price include sales tax or VAT?
In many countries the displayed price already includes it. If yours does, enter the tax rate and the tool takes it out of your profit. If you add tax on top of your listed price, leave it at 0.
Does this work for Shopee, Lazada, Amazon, Mercado Livre, Jumia, Daraz, Tokopedia, Etsy or my own shop?
Yes for any of them, because you type the percentages and fees yourself. We are not affiliated with any marketplace.
How do I track profit on every sale, not just one product?
Use the free Daily Sales Record app: record each sale with its product cost, and see your profit in daily, weekly and monthly reports.
More free tools for small businesses
- Free Invoice Generator
- Free Receipt Maker
- Free Quotation Maker
- Free Daily Cash Book
- Free Stock Sheet
- Free Daily Sales Tracker
- Free Profit Margin Calculator
Need everything in one place? Daily Sales Record manages customers, products, stock, invoices and sales reports on your phone. See all free business tools.