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Adds context for landed cost, shipping subsidy, return rate, payment fees, ad spend, markdowns, and inventory carrying cost.
Enter your numbers first, then use the niche guidance below to interpret the output against ecommerce founders, store managers, finance leads, and inventory planners..
Ecommerce revenue can look healthy while contribution is thin. Product cost, freight, duties, pick-pack fees, return processing, payment fees, platform fees, discounts, and ad spend all compete for the same gross profit.
Use this calculator to test store-level or SKU-level margin before scaling paid acquisition, running promotions, or placing a larger inventory order. The output is strongest when paired with return rate and markdown assumptions.
Gross margin starts with revenue minus product and fulfillment-related direct costs. Net margin then subtracts operating expenses such as ads, software, labor, storage, creative, and admin overhead.
An online store records $150,000 in sales, $78,000 in product, freight, duties, and fulfillment cost, plus $44,000 in ads, software, labor, storage, and admin overhead.
The result should be reviewed with return rate and ad spend. If net margin is weak, a higher price may not be enough; the store may need lower landed cost, better shipping policy, or tighter acquisition spend.
Interpretation assumptions: Amounts and percentage assumptions here are illustrative planning inputs, not measured industry averages. Compare results with your own costs and records; any displayed threshold bands are illustrative and do not establish typical business performance.
Usually ad spend is tracked as an operating expense, but it should still be reviewed before scaling because it can erase contribution.
Estimate return processing, lost shipping, damaged inventory, and refund impact as part of your margin review.
Yes. Enter the revenue and direct costs for that SKU, then allocate the relevant operating expenses to interpret net margin.
Use the broader retail model for category-level decisions.
Check payback before increasing inventory or ad spend.
Use when a digital product or subscription model is part of the plan.
Focuses on food cost, labor scheduling, delivery platform fees, waste, rent, and the difference between menu-level and month-level margin.
Connects margin to occupancy, average daily rate, OTA commission, housekeeping load, utilities, amenities, and event or food revenue mix.
This calculator provides a first-pass planning estimate. Confirm tax, inventory accounting, duties, marketplace reporting, and bookkeeping treatment before acting on the output.
Your results will appear here
Enter your financials and click Calculate to compare gross and net margin against illustrative planning thresholds. Thresholds are illustrative planning bands for scenario review, not observed industry averages or benchmarks from third-party reports.