Formula
Profit = Revenue − COGS − Ad spend − Fees − Shipping − Other costsBuild a useful profit view
This calculator subtracts product cost, advertising, fees, shipping and other entered costs from store revenue. The example inputs produce $25,000 profit on $100,000 revenue, a 25% margin.
Avoid gross-revenue bias
Use revenue net of refunds and discounts. Include payment processing, marketplace commissions and fulfillment where applicable. Otherwise, the result can substantially overstate profitability.
What remains outside the model
The tool is a planning estimate, not an accounting statement. Taxes, depreciation, financing, inventory timing and owner compensation are included only if you place them in other costs.
Assumptions
- Revenue is net of refunds and discounts.
- Taxes and owner compensation are included only if entered under other costs.
Sources and methodology
CalcMotive publishes the formula and assumptions so you can decide whether the estimate fits your use case. See our methodology standards.