worldofcalcsE-commerce Profit Calculator
Selling price
Costs per order
Marketplace and payment fees
Prices to aim for
How much do you really make per order?
Online sellers often see a healthy gap between cost and price, then find little profit left after GST, marketplace commission, shipping, packaging and ads. This calculator works out the profit and margin on each order, and the price you need to break even or reach a target margin.
How profit per order is worked out
Marketplace and website prices include GST, so the GST inside the price is price × rate ÷ (100 + rate), not price × rate. Commission and gateway fees are charged on the full price. Margin is profit as a share of the price without GST. GST you pay on purchases and on marketplace fees can usually be claimed back as input tax credit, so it isn't included as a cost.
Protecting your margin
- Returns and cancellations can wipe out the profit of several orders, especially in fashion. Add an allowance for them to 'other costs'.
- Marketplace fees change often and differ by category and price band. Check the latest rate card for your category.
- Charging GST on the full price is a common mistake; it makes products look less profitable than they are.
- Ads are a real cost per order: divide your monthly ad spend by the orders it brings in.
- Selling on your own website avoids commission, but you pay a payment gateway fee (often about 2%) and your own marketing and delivery costs.
- Register for GST and claim input tax credit on purchases and fees, or GST becomes an extra cost.
Worked example
- A product sold for ₹999 including 18% GST
- GST inside the price: ₹999 × 18 ÷ 118 = ₹152.39, so you keep ₹846.61
- Costs: product ₹400, shipping ₹70, packaging ₹20, ads ₹50, closing fee ₹30 and 15% commission (₹149.85) = ₹719.85
- Profit per order: ₹126.76, a margin of 15%
- Break-even price: ₹817; for a 20% margin you would need about ₹1,080
Profit at different selling prices
Same costs as the example: product ₹400, shipping ₹70, packaging ₹20, ads ₹50, ₹30 fee, 15% commission and 18% GST.
| Price (incl. GST) | GST inside | You keep | Total costs | Profit | Margin |
|---|---|---|---|---|---|
| ₹699 | ₹106.63 | ₹592.37 | ₹674.85 | −₹82.48 | −13.9% |
| ₹799 | ₹121.88 | ₹677.12 | ₹689.85 | −₹12.73 | −1.9% |
| ₹999 | ₹152.39 | ₹846.61 | ₹719.85 | ₹126.76 | 15.0% |
| ₹1,199 | ₹182.90 | ₹1,016.10 | ₹749.85 | ₹266.25 | 26.2% |
| ₹1,499 | ₹228.66 | ₹1,270.34 | ₹794.85 | ₹475.49 | 37.4% |
Because commission rises with the price, each extra ₹100 of price adds less than ₹100 of profit.