In short
This profit per order calculator shows what you keep after the costs you enter and the average cost of returns. Revenue is the money from a sale. Costs are what you pay for that order. Profit is what is left. Margin is profit as a share of the order total.
It is for sellers on marketplaces, online shops and print on demand. Sales can rise while costs use up what you earn. Enter each cost to see which ones reduce your profit. This is an amount per order before fixed costs, not net income.
- Profit per order$5.95example after entered costs and returns
- Margin on the order total16.08%example profit divided by order total
- Profit before ads$9.95example ad budget to break even
- Average cost of returns$2.05per order in this example

Inputs
How to use it
Profit per order calculator: which costs count?
Count these
6- Product costYesWhat the goods cost you. This can include shipping to get them and tax paid on goods bought for resale.
- Shipping you payYesYour shipping label or provider charge.
- PackagingYesBox, mailer, tape and inserts.
- Marketplace and payment feesYesCount each fee once. Do not enter the same fee in both fee boxes.
- AdsYesAd spend divided by orders in the same period.
- ReturnsYesUse the returns boxes. Do not add the same costs to Other costs.
Your call
1- Your own timeYour choiceUse one rule each time you count it.
Leave out
2- Sales tax the buyer paysNoLeave it out of the item price and shipping charged.
- Rent, software and other fixed costsNoThese are costs you pay whatever you sell. They do not belong to one order.
The IRS says sales tax charged to the buyer is not your income. That is the tax you must collect and pay to the state or local government. A tax imposed on you as the seller is treated differently, so ask a tax professional about yours.

The math
How it is calculated
Here is how this calculator works. All costs means product cost, shipping you pay, packaging, fees, ads and other costs. Return rate is returned orders divided by orders, shown as a percent. Product cost back is product cost times the share you can recover. A returned order is refunded in full. You do not get back the fees, the postage you paid, the packaging or the ad cost. You pay the cost of a return that you enter, and you get back the share of the product cost that you enter.
Excel and Google Sheets
Order profit in a spreadsheet
Put the inputs in cells B2 through B13 in the order shown here. Enter percents as numbers, such as 10 for the example fee.
| Cell | Input |
|---|---|
| B2 | Item price |
| B3 | Shipping charged |
| B4 | Product cost |
| B5 | Shipping you pay |
| B6 | Packaging |
| B7 | Fee percent |
| B8 | Fixed fee |
| B9 | Ad cost |
| B10 | Other costs |
| B11 | Return rate |
| B12 | Cost of a return |
| B13 | Product cost back percent |
| Cell | What it gives | Formula | Example |
|---|---|---|---|
| B14 | Order total | =B2+B3 | $37.00 |
| B15 | Fees | =ROUND(B14*B7/100, | $4.00 |
| B16 | Profit if kept | =B14-(B4+B5+B6+B15+B9+B10) | $8.00 |
| B17 | Cost of one return | =B14+B12-ROUND(B4*B13/100, | $41.00 |
| B18 | Average cost of returns | =ROUND(B17*B11/100, | $2.05 |
| B19 | Profit per order | =B16-B18 | $5.95 |
Spreadsheet ROUND rounds ties away from zero, as this tool does for the returns line. Spreadsheets use binary numbers, so a sum can differ by a cent in rare tie cases.
Example
Worked example
A print-on-demand shirt sells for $32.00, plus $5.00 shipping. All inputs are made-up example numbers. The 10% plus $0.30 fee is not any platform's rate.
Of the $37.00 order, $5.95 is left after each cost and the average cost of returns. A kept order leaves $8.00. A returned order loses $33.00.
Where the example order goes
In print on demand the buyer pays you and you pay the provider for the product, the print and the shipping. Printful, for example, lists the base price, shipping, extra customization fees and tax as separate charges. It also says it does not accept returns or exchanges for buyer's remorse, wrong size or wrong color. So a change-of-mind return can cost you the whole product cost. Check the policy of the provider you use.
These are facts from one provider, checked on October 13, 2026. All money, fees and return inputs in the example are made up.
Three cases
Discounts and advertising examples
| Case | What changes | Order total | Average cost of returns | Profit per order | Margin |
|---|---|---|---|---|---|
| Starting numbers | None | $37.00 | $2.05 | $5.95 | 16.08% |
| No ads | Ad cost $0.00 | $37.00 | $2.05 | $9.95 | 26.89% |
| Free shipping | Shipping charged $0.00 | $32.00 | $1.80 | $1.70 | 5.31% |
| More returns | Return rate 15% | $37.00 | $6.15 | $1.85 | 5.00% |
| 20% off the item | Item price $25.60 | $30.60 | $1.73 | $0.51 | 1.67% |
Each row changes one input from the starting example. A discount leaves less money to cover the same costs.
Interpret
Reading your result
Profit or loss
Positive profit is money left after your entered costs. Negative profit means those costs exceed the order total. Profit margin per order divides this amount by the whole order total, including shipping charged.
A returned order
The returned-order result is what you lose or keep if this one order is fully refunded. It is not a forecast. A negative returns cost means returning the item costs less than keeping the order.
Profit before ads
This is the most you can spend on ads per order and break even. Break-even means profit is zero after your entered costs. If this amount is negative, the order loses money even without ads.
Margin before ads and ROAS
ROAS is revenue divided by ad spend. The example margin before ads is 26.89%. Enter that in the Break-Even ROAS Calculator for about 3.72×. Returns are already counted in that margin.
Gross margin and net income
Gross margin subtracts only the cost of goods sold from net sales. Ads are a selling expense that comes after gross margin. Net income also counts overhead and other income or costs. Read the Profit Margin page for those levels.
How the return rate changes profit
Return rate (%) · Profit per order (USD)
Use your own return rate. This example is not a forecast of how many orders will come back.
What can I spend on ads?
Subtract the profit you want from profit before ads to find your ad budget per order.
The example leaves $9.95 before ads. For $5.00 profit per order, the ad budget is $4.95.
Use your own ad costs and profit goal. The page gives no average or target for your shop.
| Ad cost per order | Profit per order | Margin |
|---|---|---|
| $0.00 | $9.95 | 26.89% |
| $2.00 | $7.95 | 21.49% |
| $4.00 | $5.95 | 16.08% |
| $6.00 | $3.95 | 10.68% |
| $8.00 | $1.95 | 5.27% |
| $10.00 | -$0.05 | -0.14% |
Avoid
Common mistakes
Leaving out the shipping label
Count shipping charged as money in, and shipping you pay as a cost. They are separate amounts.
Wrong$11.45 profitRight$5.95 profitLeaving out ads
Ad spend reduces what you keep. Enter your cost per order for the same period as your sales.
Wrong$9.95 profitRight$5.95 profitLeaving out returns
A refund lowers sales. Postage, packaging, ads and fees remain costs in this model. A return may also add a return label cost.
Wrong$8.00 profitRight$5.95 profitApplying the percent fee to the item only
This model charges the percent on item price plus shipping. Item-only fees would be $3.50, leaving $6.45. If your fee uses another base, enter the actual dollar fee and set the percent to 0.
Wrong$3.50 feesRight$4.00 fees in this modelDividing by the item price
Use the order total as the margin base. The item price leaves out the shipping that the buyer pays.
Wrong18.59%Right16.08%
Limits
What it does not include
- Enter totals for the whole order if it has several items. There is no quantity field or quantity discount model.
- It leaves out currency changes, subscriptions, fixed overhead, income tax and how long money takes to arrive. It gives no monthly total.
- Partial refunds, discounts stacked on refunds and platform rules on fee refunds are outside this model.
- Money can be $0.00 to $1,000,000,000.00 per box. Item price must be at least $0.01. Percents can be 0 to 100. Each input allows at most two decimal places.
- The percent fee and product cost back round half up to the cent. The average returns cost rounds ties away from zero. That line rounds before it is subtracted, so the result lines add up.
- Nothing you enter is saved or sent. This tool gives no tax, legal or financial advice.
Questions
Questions
What about gross, operating and net margin?
Those levels count different costs. See how each level works on the Profit Margin page. Gross, operating and net margin
What is contribution margin per order?
Contribution margin is the selling price less the costs that change with each unit sold. This per-order amount is what remains to help cover fixed costs and profit. Contribution margin calculator
What is a healthy profit margin per order?
Choose the profit you need from your own costs and goals. This page gives no benchmark. The ad budget table shows how to work backward from a profit goal.
How does order quantity change profit per order?
Use the totals for all items in the order. Do not multiply the fixed fee by the number of items. A monthly total needs a separate choice about which fixed costs to subtract.
Can a discount code turn an order into a loss?
Yes, if the lower order total no longer covers your costs. In the example, a 20% item discount leaves $0.51. Change your own price to check the result.
Sources
Sources and review
Sources6 official pages, each read on the date shownShow allHide
- OpenStax: merchandising and net salesopenstax.org · Read
Net sales, returns, allowances and cost of goods sold. It does not define gross margin in its text.
- OpenStax: income statementsopenstax.org · Read
Gross margin, selling expenses such as ads, and net income. It does not set a profit target for an order.
- OpenStax: contribution marginopenstax.org · Read
The amount left after variable costs to cover fixed costs and profit. It does not give this tool's returns model.
- IRS: Publication 334 (2025)irs.gov · Read
How sales tax collected from buyers is treated for income, and tax paid on goods bought for resale. It is not tax advice.
- Printful: returns and refundsprintful.com · Read
One provider's return policy on the day read. It does not describe other providers.
- Printful: how payments workprintful.com · Read
One provider's price structure on the day read. It does not describe other providers or set the example prices.
The page text was last updated on October 13, 2026 and the sources were last checked on October 13, 2026. Example figures are illustrative and were made with the same formulas as the calculator.
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