Business & Invoicing
E-commerce Profit Calculator
Profit per order after the VAT inside your price, platform fees, shipping and ads, plus the lowest price that still breaks even.
- Runs in your browser
- VAT taken out of the price
Tell us about one order
Your profit
Your profit pops up here
Enter the price the customer pays, your costs and the VAT rate, then hit Calculate profit.
Profit per order
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How it’s calculated
S is the price the customer pays (incl. VAT), v the VAT rate, f the platform fee and C your costs per order (product + shipping + ads). Everything is worked out at full precision and rounded only for display.
- Net revenue (excl. VAT)
- R = S ÷ (1 + v).
- VAT inside the price
- VAT = S − R = S × v ÷ (1 + v). Earlier versions used S × v, which overstates VAT on a VAT-inclusive price.
- Platform fee
- Fee charged on the price incl. VAT: fee = f × S. Fee charged on the price excl. VAT: fee = f × R. No fee entered: no fee is charged.
- Profit and margin
- Total costs T = C + fee + VAT. Profit P = S − T. Margin = P ÷ R (on sales excl. VAT); the share of what the customer pays is P ÷ S.
- Break-even price (incl. VAT)
- Fee on the price incl. VAT: C ÷ (1 ÷ (1 + v) − f). Fee on the price excl. VAT: C × (1 + v) ÷ (1 − f). If fees and VAT take the whole price, no price breaks even.
- Maximum safe discount
- S − break-even price, as an amount and as a share of S, assuming your costs per order stay the same.
- Price for a target margin m
- Fee on the price incl. VAT: C ÷ ((1 − m) ÷ (1 + v) − f). Fee on the price excl. VAT: C × (1 + v) ÷ (1 − f − m).
- What isn’t included
- VAT charged on the marketplace fee itself (usually reclaimable), returns, payment or currency-conversion charges, and income tax. VAT rates and fees aren’t pre-filled: enter the ones that apply to you. This is an estimate, not tax advice.
Questions
How is VAT taken out of a price that includes it?
Divide the price by 1 plus the VAT rate to get the price before VAT, then subtract. At 15% VAT, 149 includes 149 × 15 ÷ 115 = 19.43 of VAT, not 149 × 15% = 22.35. That second figure overstates VAT and makes profit look smaller than it is.
What’s the difference between margin and markup?
Margin is profit as a share of what you sell for (here, sales excluding VAT). Markup is profit as a share of what the product cost you. The same order can have a 9% margin and a much higher markup, so check which one a target refers to. This calculator shows margin.
Why does it matter what the platform fee is charged on?
Some marketplaces work out their fee on the full price the customer pays, VAT included; others use the price before VAT. Charging the fee on the VAT-inclusive price makes it bigger. Check how your marketplace calculates its fee and pick the matching option.
What does the break-even price mean?
It’s the VAT-inclusive price at which this order makes exactly zero profit with your costs, fee and VAT rate. Below it you lose money on every order. The maximum safe discount is the gap between your price and the break-even price, assuming your costs per order stay the same.
Do I have to enter a platform fee?
No. Leave it blank if you sell without a marketplace or payment fee and no fee is charged. If you enter a fee, it’s applied on the basis you choose, and the breakdown shows exactly how it was worked out.