How to use Ecommerce Profit Calculator
- Select a unified currency and tax-inclusive/exclusive selling price mode, then enter the purchasing, fulfillment, and payment collection costs for a single placed order.
- Select a refund probability model or simplified reserve rate, then fill in recoverable value, return costs, and operating cost allocation.
- View revenue/cost breakdowns, target profit CPA, and price/ad spend scenario tables; download CSV or reports.
Try a concrete example
The default no-tax example produces expected operating profit of 31.95 per placed order under the displayed refund and cost assumptions.
How to interpret results
Use one currency and a consistent placed-order basis. The refund model uses expected retained revenue, net inventory consumption, refund-related costs and allocated monthly overhead. Recovered inventory is not cash income. The simple reserve model is different. Results are estimates, not accounting net profit.
Frequently asked questions
Why do items after refund offset costs?
Recovery percentages should only be entered for inventory that can still be resold or repurposed. It does not represent immediate cash recovery and cannot be treated as additional sales revenue.
Will taxes and fees be automatically calculated by country?
No. It only splits based on your input sales tax rate and tax-inclusive basis; corporate income tax, depreciation, inventory cash lock-up, etc., are not included in the model.
How to understand Target Profit CPA?
Upper limit of advertising budget after deducting non-ad costs, fixed allocations, and target profits from net retained revenue. It is based on placed orders, which is not equal to the CPA of retained orders.
Will scenario tables modify the original settings?
No. The nine scenarios only adjust selling price by ±10% and ad costs by ±20%, keeping all other assumptions constant.
Is the calculated result accounting net profit?
No; it is estimated operating profit under the entered assumptions. Please reconcile against actual refunds, bills, and financial records.