Order Profit Calculator
Work out the profit on a single order once product costs, shipping, fees, discounts and marketing are paid.
Your order profit
Enter your order revenue to see your order profit.
Why order profit matters
If you run an e-commerce or DTC brand, knowing your order profit is essential to staying profitable as you grow. Order profit is what you make from a single customer order once every cost of fulfilling and winning it is paid.
It shows your true earnings per sale, so you can spot products and campaigns that sell well but make little, and make better decisions on pricing, promotions and marketing.
How order profit is calculated
Take the revenue from the order and subtract every cost that comes with it: the cost of goods sold, shipping and fulfilment, payment fees, discounts and marketing.
Order profit = order revenue − (cost of goods + shipping and fulfilment + payment fees + discounts + marketing)
The profit margin is order profit divided by what the customer paid: the order revenue after discounts.
Working out order profit regularly shows how profitable each sale is and supports decisions on pricing, promotions and spending.
Worked example
| Order revenue | $100.00 |
|---|---|
| Costs (goods, shipping, fees, discounts, marketing) | $65.00 |
| Order profit | $35.00 |
| Profit margin (of what the customer paid) | 36.8% |
Say you run a jewellery shop and one order has $100 of revenue. The products cost $40, shipping and fulfilment $10 and payment fees $3. The customer used a $5 discount code, and the order took $7 of marketing to win.
Order profit = 100 − (40 + 10 + 3 + 5 + 7) = $35. After covering all of its direct costs, the order earns $35: a 36.8% margin on the $95 the customer paid.
Frequently asked questions
What is the difference between order profit and contribution margin?
They measure the same thing from different inputs. This calculator takes the costs of an order as amounts you already know. The Contribution Margin Calculator works some of them out from rates, such as a payment fee percentage and a tax rate, and shows the margin before and after ad spend.
Should discounts count as a cost?
Yes, if you enter the order revenue at full price. A discount is revenue you give up, so taking it off shows what the order really made. If your revenue figure is already after discounts, leave the discount field blank.
Which marketing cost should I use?
Your cost to win the order, such as the CPA from your ad platforms, or your total ad spend divided by your orders. For returning customers who came back through email, the marketing cost per order is often much lower.
What about fixed costs such as salaries and software?
Order profit leaves them out: it is the profit from the order itself. Your order profit across all orders has to cover your fixed costs before the business makes money. The PROAS Calculator spreads fixed costs over your orders.
Why is my order profit negative?
The order costs more than it brings in. Look at the largest cost first: often it is the marketing cost of winning a first order, a deep discount or free shipping on a small basket.
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