SellerKitHow to calculate your profit margin
Add product cost, packaging, seller-paid shipping, advertising per order and the fixed payment charge. Percentage platform and payment fees are calculated from your selling price. Subtract all these expenses from the selling price to get contribution per order. Divide contribution by the selling price and multiply by 100 for the contribution margin.
A worked example
Sell for $30 with a $10 product cost, $0.50 packaging, $3 shipping, $2 advertising, an 8% platform fee, and a 2.9% payment fee plus $0.30. Percentage fees total $3.27. The fixed charge brings total fees to $3.57. Your total variable costs are $19.07, leaving $10.93 per order and a contribution margin of about 36.4%.
Contribution is different from net profit
This result is the amount available to cover monthly overhead and then profit. Rent, software subscriptions, owner salary, tax and returns are not automatically included. Use a reasonable per-order allowance in your entered costs where appropriate, and use the break-even calculator for fixed monthly expenses.
Check your fee basis
This calculator assumes both percentage fees apply to the entered product selling price. Some marketplaces charge on shipping collected, tax or a different amount. Enter effective rates from your own settlement records if the fee basis differs. Rates here are examples and are not live marketplace quotes.
Frequently asked questions
Is this net profit?
It is contribution after entered per-order costs. Monthly overhead, income tax, refunds and unentered expenses are excluded.
Does margin mean the same as markup?
No. Margin divides profit by selling price; markup divides the amount added by the cost basis.
Why does changing currency keep the numbers?
Currency is a display setting only. Enter all amounts in the same currency; no exchange-rate conversion occurs.
Are my costs uploaded?
No. The tools save your current product in browser local storage, which you can clear in browser settings.