How this WooCommerce profit margin calculator works
WooCommerce does not track cost of goods sold out of the box. Revenue looks healthy in reports while shipping, Stripe fees, and a stack of premium plugins quietly erase the margin. This free ecommerce profit calculator is built for that gap: plug in realistic WooCommerce costs, see net profit and net margin per sale, and decide whether a price — or a free-shipping promise — still works.
No plugin install. No store connection. No signup. The math runs in your browser so you can pressure-test pricing before you list a SKU or change shipping rules.
The formula (what “true” profit includes)
Per sale:
Net profit = (Selling price + shipping charged) − COGS − shipping you pay − packaging − ad spend − gateway fee − (hosting + plugins + retainer) / monthly orders − refund provision
Net margin % = net profit ÷ revenue × 100. Markup % = net profit ÷ COGS × 100 (when COGS > 0). Gross margin % = (price − COGS) ÷ price × 100.
Worked example: $100 product
Suppose you sell a product for $100 with:
- COGS $40
- Shipping you pay $8 (customer gets free shipping)
- Ad spend $15
- Stripe 2.9% + $0.30 → $3.20 gateway fee
- $115/month hosting + plugins, 100 orders → $1.15 overhead
- 5% refund rate → ~$2.56 provision on COGS + ship + fees
Total costs ≈ $70. Rough net profit ≈ $30 — about a 30% net margin, not the 60% “margin” people quote from price minus COGS alone.
Markup vs margin (stop mixing them up)
Margin is profit as a percentage of selling price. Markup is profit as a percentage of cost. A product that costs $50 and sells for $100 has a 50% margin and a 100% markup. Use “Set target margin” mode when working backwards from the margin you need after fees and shipping.
Shipping is where WooCommerce margins die quietly
Free shipping raises conversion and can destroy contribution margin. Model both shipping you pay and shipping customer pays before you lock a rule in WooCommerce.
Payment gateway fee comparison (typical US rates)
| Gateway | Typical rate | Fee on $50 | Fee on $100 |
|---|---|---|---|
| WooCommerce Payments | 2.90% + $0.30 | $1.75 | $3.20 |
| Stripe | 2.90% + $0.30 | $1.75 | $3.20 |
| Square | 2.65% + $0.10 | $1.43 | $2.75 |
| PayPal | 3.49% + $0.49 | $2.24 | $3.98 |
What net margin should you aim for?
- 25%+ — healthy cushion for ads, returns, and bad months
- 15–25% — workable if costs are stable and volume is predictable
- Under 15% — fragile; a CPA spike or carrier increase can erase profit
Frequently asked questions
How do I calculate profit margin on WooCommerce?
Subtract COGS, shipping you pay, packaging, ad spend, gateway fees, allocated hosting/plugin overhead, and a refund provision from revenue. Divide net profit by revenue for net margin.
What is the difference between margin and markup?
Margin is profit ÷ selling price. Markup is profit ÷ cost. A $50 cost sold at $100 is 50% margin and 100% markup.
Should I include shipping in WooCommerce profit calculations?
Yes. Carrier cost is real. If customers pay shipping, add it to revenue and still subtract what you pay.
Is this WooCommerce profit margin calculator free?
Yes — free, no signup, no store connection.
Margins look thin?
I help WooCommerce stores fix checkout, shipping rules, gateway setup, and store performance so more of each sale stays profit. Book a free 15-minute WooCommerce audit.