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Ecommerce Gross Margin Calculator

Calculate ecommerce gross profit and margin after COGS, variable fees, and shipping subsidy.

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Inputs

$
$
$
$

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Results

Gross Margin

Gross profit divided by revenue.

Gross Profit$62.90
Total Variable Cost$57.10
Variable Cost Rate47.58%

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Assumptions

  • All prices, costs, rates, duties, shipping charges, and campaign assumptions are user-entered.
  • Calculations are deterministic and run locally in the browser without uploading ecommerce or customer data.
  • Results are planning estimates and do not include every tax, refund, chargeback, inventory, financing, or accounting adjustment.

Sensitivity preview

Revenue -10%: Gross Margin 47.13%

Revenue Current: Gross Margin 52.42%

Revenue +10%: Gross Margin 56.74%

Formula: Gross profit = revenue - COGS - variable fees - shipping subsidy. Gross margin percent = gross profit / revenue x 100.

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About this Ecommerce Gross Margin Calculator

Ecommerce gross margin should include the direct product cost, variable fees, and shipping subsidy that move with each sale.

Who this calculator is for

  • Online store owners, ecommerce operators, and marketplace sellers modeling unit economics.
  • Merchandising, fulfillment, and finance teams comparing price, cost, shipping, and fee assumptions.
  • Founders preparing margin checks before changing packaging, promotions, bundles, or import plans.

When to use it

  • Estimate profit from user-entered product, order, fulfillment, and recovery assumptions.
  • Compare margin scenarios before publishing prices, discounts, shipping offers, or bundles.
  • Document transparent formulas for ecommerce planning without relying on hidden platform defaults.

How to use this calculator

  1. Enter your own prices, costs, conversion rates, fees, and shipping assumptions.
  2. Review the primary output, then use supporting outputs to see which cost driver affects the result.
  3. Run conservative and optimistic scenarios before using the result in a forecast or promotion plan.

Key assumptions

  • All prices, costs, rates, duties, shipping charges, and campaign assumptions are user-entered.
  • Calculations are deterministic and run locally in the browser without uploading ecommerce or customer data.
  • Results are planning estimates and do not include every tax, refund, chargeback, inventory, financing, or accounting adjustment.

Accuracy and testing

Review formula sources, default test cases, assumptions, unit handling, rounding rules, and changelog for this calculator.

View accuracy page

How this calculator works

Gross profit = revenue - COGS - variable fees - shipping subsidy. Gross margin percent = gross profit / revenue x 100. Total variable cost = COGS + variable fees + shipping subsidy.
Gross profit = revenue - COGS - variable fees - shipping subsidy. Gross margin percent = gross profit / revenue x 100.

Inputs explained

Revenue

Selling price or average order revenue for the item or order being modeled.

COGS

Product cost, manufacturing cost, or wholesale cost for the sale.

Variable fees

Payment processing, marketplace, platform, pick-pack, or other per-order fees you want included.

Shipping subsidy

Shipping cost you absorb after customer-paid shipping, if any.

Understanding your results

Gross margin percent shows the share of revenue left after the variable costs you entered. It does not include fixed overhead, ad spend, taxes, financing, or returns unless you include them in the inputs.

Example scenarios

Practical scenario

$120 revenue, $42 COGS, $8.60 variable fees, and a $6.50 shipping subsidy produce $62.90 gross profit and a 52.42% gross margin.

Key Features

  • Instant Calculation
  • Private & Secure
  • Mobile Optimized

Things to Keep in Mind

These calculators do not fetch live carrier rates, marketplace fees, duty schedules, ad platform data, exchange rates, tax rates, or fulfillment provider pricing. Enter the current assumptions that apply to your store.

Tips & Best Practices

  • Use recent invoices, carrier bills, payment processor reports, and marketplace statements when available.
  • Separate variable costs from fixed overhead so unit margin is easier to compare across products.
  • Stress-test margin with higher shipping, lower conversion, higher waste, and deeper discount assumptions.

Glossary of Terms

COGS
Cost of goods sold, usually the direct cost to acquire, manufacture, or prepare the product sold.
Shipping subsidy
The portion of shipping cost paid by the merchant instead of the customer.

Frequently Asked Questions

Are these ecommerce margin results guaranteed?
No. Results are planning estimates based only on your entered assumptions. Actual profit can change because of refunds, taxes, chargebacks, carrier adjustments, promotions, inventory shrink, and marketplace rules.
Is my pricing or order data stored?
No. The calculator runs locally in your browser and does not store, transmit, or review the prices, costs, rates, or order assumptions you enter.
Should ad spend be included here?
Only include ad spend if you want a contribution-margin style result. For a cleaner gross margin view, keep ad spend separate.