Calculate your true net profit, transaction fees, and CVP break-even thresholds across major sales platforms.
| Pricing Tier | Net Profit / Unit | Net Margin | Monthly Break-Even | Sales Volume Required (For Same Profit) |
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| Comp | Product Opportunity Name | Platform | Price + Ship Charge | Variable Cost | Net Profit / Unit | Net Margin | Break-Even | Actions |
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Comparing selected e-commerce scenario parameters. Winner cards highlight key optimization strengths.
Operating a successful e-commerce store requires a precise understanding of the margins on your physical goods. Many shop owners fail by set prices based purely on the cost of the product (COGS) and a markup percentage, neglecting the transaction fees, shipping charges, and marketing ad-spend required to make a sale.
To calculate your true Net Profit, you must subtract Cost of Goods Sold (COGS), payment gateway processing fees (typically 2.9% + $0.30), shipping packaging and postage costs, advertising cost-per-acquisition (CPA), and platform costs from your retail price. The remaining amount is your net profit. Additionally, understanding your Break-Even Point (the number of units you must sell to cover fixed overhead expenses like platform fees and storage) is critical for operational safety.
This profit tool allows you to perform price-sensitivity analysis in real-time. By inputting COGS, shipping, and marketing metrics, you can dynamically view gross and net margin bars to find the optimal retail price that maximizes cash flow.
Markup is the percentage added to the cost to determine the selling price (e.g., $10 cost + 50% markup = $15 price). Margin is the percentage of the selling price that is profit (e.g., $5 profit on a $15 price is a 33.3% margin).
Returns reduce your revenue while incurring shipping and restocking costs. If your return rate is 5%, you must factor this loss into your average unit economics to ensure your pricing offsets returned merchandise.
Payment gateways (like Stripe or PayPal) charge a fee to process credit card payments. This is typically a percentage of the total transaction plus a flat fee (e.g., 2.9% + $0.30). These fees must be subtracted from revenue to calculate net profit.