Ecommerce Profit Margin Calculator
Calculate gross margin, net margin, markup and breakeven ROAS.
Enter your product and operational costs to calculate margins per order.
42.6% Net Margin
How it works
Questions
Everything below is on the page for search engines as well as for you — no accordions hiding the answers.
Gross Margin only subtracts the Cost of Goods Sold (COGS) from your selling price. Net Margin subtracts all other variable costs as well—including shipping, packaging, payment gateway fees, and ad spend—giving you the true profit you take home per order.
Breakeven Return on Ad Spend (ROAS) is the minimum ad performance you need to not lose money on an order. If your Breakeven ROAS is 2.5x, any ad campaign bringing in less than ₹2.50 for every ₹1 spent is unprofitable.
You can improve net margin by reducing COGS through bulk supplier negotiations, lowering shipping costs, increasing your Average Order Value (AOV) so fixed costs take up a smaller percentage, or reducing RTO (Return to Origin) losses.
Related tools
Create a wa.me click-to-chat link with a prefilled message. Paste it in your bio, emails, ads or QR codes.
Turn your WhatsApp number into a print-ready QR code. High error correction, custom colour, PNG and SVG download.
Work out your monthly WhatsApp Business API bill from Meta's per-message rates, in USD and INR.
Improve net margin with higher RTO delivery.
Understanding your unit economics is just the first step. RateUp helps you improve your net margins by recovering lost revenue from RTOs.