Order Profit Calculator

Why is it important?

If you’re running an e-commerce or DTC brand, understanding your order profit is essential to staying profitable and scaling effectively. Order profit is the net profit you make from a single customer order after deducting all the costs involved in fulfilling it. This metric gives you insight into your true earnings per sale, helping you see the actual value of each order, avoid wasteful spending, and make smarter pricing and marketing decisions.

How is it calculated?

Order profit is calculated by taking the total revenue from a single order and subtracting all costs associated with fulfilling it: Order Revenue, Cost of Goods Sold (COGS), Shipping and Fulfillment Costs, Transaction Fees, Discounts, and Marketing Costs. This calculation provides a clear picture of the actual profit made per order.

The formula to calculate order profit its: Order Revenue – (COGS + Shipping & fulfillment + transaction fees + discounts + marketing costs).

For example, suppose you are a luxury jewellery shop and one of your rders includes: Order Revenue: $100, COGS: $40, Shipping & Fulfillment: $10, Transaction Fees: $3, Discounts: $5, Marketing Costs: $7.

In this case, the order profit is $35. This means that, after covering all direct costs, the business earns $35 from this particular order.

Calculating order profit regularly helps businesses understand the profitability of each sale and supports decisions on pricing, promotions, and spending.