Calculate profit, loss, profit margin, ROI, and break-even points with multi-currency support and platform-specific fees for Amazon, eBay, and Shopify.
Calculate profit margins, ROI, and cost breakdown for your products across global marketplaces
Amazon is one of the largest online marketplaces, offering sellers two main fulfillment options: Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM). With FBA, Amazon handles storage, packing, shipping, and customer service, but charges fulfillment fees based on product size and weight. Sellers also pay a referral fee, typically ranging from 8% to 15% depending on the product category. Additional costs may include monthly storage fees and long-term storage fees for slow-moving inventory. Understanding these fees is critical to maintaining profitability when selling on Amazon.
Shopify empowers sellers to build their own branded online stores with full control over design, customer experience, and pricing strategies. Unlike marketplace platforms, Shopify charges a monthly subscription fee that varies by plan, plus transaction fees if you don't use Shopify Payments. Sellers are responsible for driving their own traffic through marketing, SEO, and advertising, which gives more control but requires active promotion. Shopify is ideal for businesses focused on building a unique brand identity and retaining customer data for long-term growth.
eBay offers flexibility through both auction-style and fixed-price listings, making it suitable for selling new, used, and collectible items. Sellers pay a small insertion or listing fee per item, and a final value fee calculated as a percentage of the total sale price (including shipping). eBay also offers promoted listings to increase visibility for an additional cost. The platform has a built-in audience, which reduces marketing effort, but competition can be high and profit margins may be tighter due to fee structures and buyer expectations for competitive pricing.
Understanding the difference between margin and markup is essential for accurate pricing and profitability analysis. Both metrics relate selling price to cost, but they are calculated differently and serve distinct purposes in business decision-making.
| Metric | Definition | Formula Concept | When to Use |
|---|---|---|---|
| Markup | The percentage added to cost to determine selling price | (Selling Price - Cost) / Cost × 100 | Setting prices based on cost recovery and desired profit above cost |
| Margin | The percentage of selling price that represents profit | (Selling Price - Cost) / Selling Price × 100 | Analyzing profitability and comparing performance across products or time periods |
Net profit is the actual amount remaining after all costs, fees, taxes, and expenses are deducted from revenue. Profit margin expresses this as a percentage of total revenue, indicating how efficiently a business converts sales into profit. Higher profit margins suggest better cost control and pricing power.
| Revenue | Total Cost | Net Profit | Margin % |
|---|---|---|---|
| $1,000 | $700 | $300 | 30% |
| $2,500 | $2,000 | $500 | 20% |
| $5,000 | $3,500 | $1,500 | 30% |
| $10,000 | $8,500 | $1,500 | 15% |
Note: A business with $1,000 revenue and 30% margin may be more efficient than one with $10,000 revenue and 15% margin, depending on scale and fixed costs.
Return on Investment (ROI) measures how much profit you generate relative to the total amount invested. In eCommerce, this includes product costs, platform fees, marketing spend, shipping, and other operational expenses. A positive ROI indicates profitability, while a negative ROI signals that costs exceed revenue. Tracking ROI helps sellers make informed decisions about inventory, pricing, and marketing budgets.
| Expense Type | Example | Impact on Profit |
|---|---|---|
| Product Cost | Manufacturing, wholesale purchase, inventory | Direct reduction of gross profit |
| Platform Fees | Referral fees, listing fees, subscription costs | Reduces net revenue per sale |
| Shipping & Fulfillment | Carrier costs, packaging materials, warehouse fees | Increases per-unit cost, especially for heavy items |
| Marketing & Advertising | PPC ads, social media campaigns, influencer promotions | Can improve sales volume but must be balanced with acquisition cost |
| Returns & Refunds | Customer returns, restocking fees, damaged inventory | Erodes profit margin, especially in high-return categories |
| Payment Processing | Credit card fees, PayPal fees, gateway charges | Typically 2-3% of transaction value, reducing net revenue |
Excel is a powerful tool for tracking and analyzing product profitability. By organizing your data into structured columns and using basic arithmetic operations, you can quickly calculate net profit, margins, and ROI for individual products or your entire inventory. Here's a step-by-step approach to building a profit and loss tracker in Excel.
Create columns for Product Name, Buying Price, Packaging Cost, Shipping Cost, Marketing Cost, Platform Fees, Selling Price, Total Cost, Net Profit, Profit Margin, and ROI. This structure allows you to input all relevant data and calculate profitability metrics automatically.
In the Total Cost column, sum all expense columns (Buying Price + Packaging Cost + Shipping Cost + Marketing Cost + Platform Fees). This gives you the complete cost per unit or per order, which is essential for accurate profit calculations.
Subtract Total Cost from Selling Price to determine Net Profit. This represents the actual money you keep after covering all expenses. A positive value indicates profit, while a negative value signals a loss.
Divide Net Profit by Selling Price, then multiply by 100 to get the profit margin percentage. This metric shows what portion of each sale is profit, helping you compare profitability across different products regardless of price differences.
Divide Net Profit by Total Cost, then multiply by 100 to calculate ROI percentage. This tells you how much return you're generating for every dollar invested, which is crucial for prioritizing high-performing products and optimizing inventory decisions.
Apply color coding to highlight profitable products (green for positive margins) and loss-making items (red for negative margins). This visual approach makes it easy to spot trends and make quick decisions about pricing adjustments or discontinuing underperforming products.
Tip: Save your Excel template and update it regularly with actual sales data to track performance over time and identify seasonal trends or cost fluctuations that impact profitability.
Calculation methodology reviewed for accuracy by professionals experienced in financial modeling and e-commerce operations.
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Last Reviewed: January 2026
This calculator is designed for informational and planning purposes. Individual marketplace fee structures may vary based on category, seller level, and promotional programs. Always verify current rates with your selling platform.
All calculations are performed locally in your browser. No business or pricing data is stored or shared.
Basic formulas used for profit and loss calculations
Profit = Selling Price - Cost Price
Loss = Cost Price - Selling Price
Profit Margin % = (Profit / Selling Price) × 100
Cost Margin % = (Profit / Cost Price) × 100
Markup % = (Profit / Cost Price) × 100
Profit margin is calculated as (Profit / Selling Price) × 100, while markup is (Profit / Cost Price) × 100. They both measure profitability but using different bases.
Yes, you can enter different cost and selling prices to calculate profit/loss for various products. The calculator stores your recent calculations in history.
The calculator will show this as a loss. You should review your pricing strategy to ensure you're making a profit on your products.
Yes, you can enter decimal values for precise calculations. This works with any currency or pricing format.