Product Margin & Profit Calculator
Calculate your ecommerce product margins including all import costs, marketplace fees, advertising, and returns. Know your real profit before you launch.
Important Disclaimer: All calculators, guides, and estimates are for informational and planning purposes only. Import duties, tariffs, customs fees, HS classifications, and shipping costs may vary by country, product, customs authority, broker, carrier, and policy changes. Always confirm with a licensed customs broker, tax advisor, or relevant authority before making business decisions.
Frequently Asked Questions
What is product margin?
Product margin is the percentage of your selling price that is profit after accounting for all costs. Gross margin = (Selling Price - COGS) / Selling Price × 100. Net margin accounts for all expenses including ads, fees, and returns.
What is a good profit margin for ecommerce?
A healthy net margin for ecommerce is typically 10-30%. However, this varies widely by category, business model, and scale. Many DTC brands target 40-60% gross margin to allow for marketing and operating expenses.
How much should I budget for returns?
Ecommerce return rates typically range from 5-30% depending on category. Apparel and footwear have higher return rates. We recommend setting aside 3-8% of revenue as a returns reserve.
How do marketplace fees affect my margins?
Marketplace fees (Amazon 15%, Etsy 6.5%, eBay ~13%) directly reduce your margin. Include these in your cost calculation before setting your selling price to ensure profitability.
Why should I include advertising cost in margin calculation?
Many sellers forget to account for ad spend when calculating unit economics. Your true margin must include the cost to acquire each customer through advertising, otherwise you may be losing money on every sale.
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