Ecommerce margin calculator
Calculate margin and markup with Shopify, Etsy, Amazon, eBay, and Stripe fees baked in. See gross vs net side-by-side.
Fill in any two. The other two calculate automatically. Click a locked field to edit it instead.
Ecommerce margin calculator benchmarks
Ecommerce margin math is where the 50/50 trap meets the platform-fee trap. A typical Shopify or Etsy seller sees a healthy-looking 60% gross margin collapse to 15-25% net once Stripe takes 2.9%, the platform takes its cut, shipping eats $4-8 per order, and ads come in around 10-20% of revenue.
The real cost stack for an online product
Take a $25 candle that costs $8 to make. Gross profit is $17, or 68% margin. But:
- Etsy fees: $25 × 6.5% + $0.20 = $1.83
- Payment processing: $25 × 3% + $0.25 = $1.00
- Shipping (you pay): $4.50, customer pays $4 → net cost $0.50
- Ad spend: $25 × 15% = $3.75 (Etsy ads + Pinterest)
Net profit becomes $17 − $7.08 = $9.92. Net margin: 39.7%. Still healthy, but a different conversation from the 68% gross number you'd see if you only subtracted COGS.
Platform fees in 2026
| Platform | Percentage | Flat fee |
|---|---|---|
| Stripe | 2.9% | $0.30 |
| PayPal | 3.49% | $0.49 |
| Shopify Payments | 2.9% | $0.30 |
| Etsy transaction | 6.5% | $0.20 listing |
| Amazon referral | 8-15% | varies |
| eBay final value | ~13% | — |
Use the calculator above — every preset uses these rates. They change once or twice a year; we update them when they do.
Frequently asked
What's a healthy net margin for ecommerce?
10-15% net is solid. 15-25% is strong. Below 5% is risky — one bad month can flip you negative. Shopify's own data shows successful stores typically run 10-20% net.
Do shipping costs hurt my margin?
Almost always, even when you charge for shipping. Most stores either eat 30-60% of shipping cost or lose customers at checkout. Free shipping above a threshold ($35-50) is the usual compromise.
Should I price using gross or net margin?
Set prices based on target net margin, not gross. A '50% gross margin' rule that ignores fees and ads is how stores grow revenue while losing money.
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