How net profit is worked out
Net revenue
What the customer pays for the product and shipping. If you’re VAT-registered we divide by 1.15: the VAT goes to the tax authority, it isn’t your income.
Costs per order
Product cost, shipping and packaging, payment fees (rate × amount paid + fixed fee), platform commission and ad cost per order.
Returns and the month
A returned order earns nothing and costs your “loss per returned order”. Monthly profit = orders × profit per order − fixed monthly costs.
Tips for sharper pricing
Enter costs before VAT if you’re VAT-registered, since you reclaim input VAT.
Payment fees vary by gateway and method (debit, credit, buy-now-pay-later). Take the rate from your contract or store dashboard.
Highest ad cost The calculator shows the most you can spend on ads per order before the month turns into a loss.
Estimates The answer is only as good as the figures entered; check it against your real statements each month.
FAQ
How do I calculate net profit per order?
Net revenue (after removing VAT if registered) minus product cost, shipping, packaging, payment fees, platform commission and ads, then the effect of returns.
Should I use the price including VAT?
No. The VAT the customer pays goes to the tax authority, so your margin is on the price before VAT. Tick “My prices include 15% VAT” and we take it out.
What is ad cost per order?
Ad spend in a period divided by the orders in it, also called customer acquisition cost (CAC). Example: 6,000 on ads and 300 orders = 20 per order.
How are returns handled?
A returned order is assumed to earn nothing and to cost the amount you enter (shipping both ways, fees not refunded, damaged goods). Returns effect = rate × (order profit before ads + loss per return).
How many orders do I need to cover my store plan?
Divide your fixed monthly costs by the net profit of one order. Enter orders per month and fixed costs and the result shows “Break-even orders a month”.