How net profit is calculated
The calculator works out the average result of one order, with returns spread across every order using your return rate. A 5% return rate means 5 in every 100 orders come back.
Fees are charged on every order, including ones that are later returned. Some platforms refund part of the fee on a return, so your real result may be slightly better than shown. This keeps the estimate on the cautious side.
Break-even price and ad budget
The break-even price is the lowest price where an order makes zero profit once everything is paid. It rises when fees, returns or ad costs rise. The ad budget figure shows how much you could spend per order on advertising before profit hits zero, which is useful when you set a target cost per sale.
Frequently asked questions
How do I calculate net profit per order?
Start with the selling price. Subtract refunded returns, platform and payment fees, the cost of the product, shipping and packaging, ad spend per sale and any other per-order costs. What is left is net profit per order.
What is a break-even selling price?
It is the lowest price at which a sale makes zero profit after all fees, costs, returns and ad spend. Above it you make money. Below it you lose money.
How do returns affect profit?
A returned order refunds the sale, may cost you return shipping, and may leave you with stock you cannot resell. The calculator spreads these losses over every order using your return rate and your resell share.
What should I use for ad spend per sale?
Divide your total ad spend by the number of orders it produced. If you spent 600 and got 100 orders, enter 6.
Does this store or send my numbers anywhere?
No. All calculations run in your browser, and nothing you enter is sent or saved.