Profit Margin Calculator
Calculate profit margin percentage and markup for a product or service. Enter the selling price and cost to get profit, margin %, and markup %.
Business
Calculator · Business
E-commerce Business Cost Calculator
The e-commerce business cost calculator helps you quickly assess the profitability of an online store. Enter your monthly revenue, product cost share, platform commission (Allegro avg 8%, Amazon avg 12%), logistics, marketing costs and return rate — the calculator will compute your gross profit and margin. Profitable online selling requires controlling multiple cost categories simultaneously. A typical e-commerce store allocates 35-50% of revenue to products, 8-15% to logistics, 5-12% to marketing and 5-8% to platform fees. Understanding your full cost structure enables better pricing and purchasing decisions.
How we calculate e-commerce costs and profitability
Product cost = revenue x product_pct / 100. Platform commission = revenue x commission_pct / 100. Logistics = revenue x logistics_pct / 100. Marketing = revenue x marketing_pct / 100. Return costs = revenue x return_rate / 100 x avg_return_cost / 100. Variable costs = sum of the above. Total costs = variable costs + fixed costs. Gross profit = revenue - total costs. Gross margin (%) = profit / revenue x 100. Store is viable when margin > 10%.
Example: revenue 100,000 PLN, product cost 40%, Allegro commission 8%
Product cost: 40,000 PLN (40%). Allegro commission: 8,000 PLN (8%). Logistics: 12,000 PLN (12%). Marketing: 8,000 PLN (8%). Returns (5%, cost 50 PLN/100 PLN): 2,500 PLN. Total variable costs: 70,500 PLN. Fixed costs: 3,000 PLN. Total costs: 73,500 PLN. Gross profit: 26,500 PLN. Gross margin: 26.5%. Store viable: Yes.
Frequently asked questions
How do you calculate gross margin in e-commerce?
Gross margin = (revenue - total costs) / revenue x 100%. The calculator accounts for product cost, platform commission, logistics, marketing, return costs and fixed costs. A margin above 10% indicates basic store viability.
What is the average Allegro commission for sellers?
The average Allegro commission is about 8% of transaction value, ranging from 3% for electronics to 12% for fashion accessories. Smart! subscription fees and listing promotion charges may also apply.
What is the average return rate in Polish e-commerce?
The average return rate in Polish e-commerce is 5-10% of orders. In clothing and footwear categories it can exceed 20-30%. Every return generates handling, packaging and often return shipping costs, significantly impacting the margin.
What logistics cost percentage should I use for an online store?
Logistics costs for a Polish online store typically range from 8-15% of revenue, covering packaging, shipping (InPost, DPD, DHL) and warehousing. Higher sales volumes allow negotiating lower courier rates.
What marketing budget should I set for an e-commerce store?
New online stores typically allocate 10-20% of revenue to marketing, while mature stores spend 5-10%. This covers Google Ads, Meta Ads, SEO, email marketing and influencer campaigns. A higher initial budget accelerates brand visibility.
At what margin is an e-commerce store profitable?
A gross margin above 10% is generally considered the minimum for viability. An optimal range is 20-30%. A margin below 10% may be insufficient to cover growth costs and unexpected expenses.
How does product cost affect online store profitability?
Product cost (COGS) is usually the largest cost item — 30-60% of revenue. Lower purchase costs mean higher margins. It is worth negotiating supplier discounts, exploring alternative sourcing, or considering a dropshipping model.
What monthly fixed costs does an online store incur?
Fixed monthly costs include: hosting and e-commerce platform (100-500 PLN), accounting (200-600 PLN), insurance, warehouse rent if applicable, and marketing tools. The total for a small store typically ranges from 1,000-5,000 PLN per month.
Is a platform commission tax-deductible?
Yes — commissions paid to Allegro, Amazon or any other sales platform are tax-deductible business expenses. Keep all invoices and documents confirming the fees paid.
How can I reduce operating costs in e-commerce?
Effective methods include: negotiating lower courier rates at higher volumes, optimising packaging (weight and dimensions), automating return processing, using retargeting instead of cold acquisition, and choosing a lower-commission platform or migrating to a proprietary store (Shopify, WooCommerce). Every percentage point saved on commission or logistics directly increases profit.
Indicative result
Results are estimates for informational purposes only. Actual costs may differ based on product category, sales volume, negotiated logistics rates and individual cost structure. Consult an accountant or business adviser before making investment decisions.
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