How it is calculated
Profit per order = price minus product cost, shipping, fees (a percent of the price) and the ad spend per order. Net margin = profit per order divided by the price.
Profit per order is what one sale leaves after everything it costs: the product, the shipping, the fees, which are a percent of the price, and the ad spend it took to win the order, your cost per acquisition.
Net margin is that profit as a share of the price, which lets you compare products sold at different prices.
A month multiplies the profit and the price by the orders you expect. The calculator keeps every decimal until the end, so a month can differ by a few cents from the rounded profit per order times the orders.
A worked example
These are the numbers the calculator opens with, so you can follow each step in the form above.
- A product sells for €39.00. It costs €11.00 to make and €5.00 to ship, fees take 3.5% of the price, ads cost €12.00 for each sale, and the store makes 300 orders a month.
- Profit per order: €39.00 minus €11.00, €5.00, €12.00 and 3.5% of €39.00 leaves €9.64.
- Net margin: €9.64 is 24.7% of €39.00.
- A month: 300 orders bring €11,700.00 of revenue and €2,890.50 of profit.
Terms used: Net profit margin, COGS (cost of goods sold), CPA (cost per acquisition), Contribution margin.
The ad spend per order depends on how well your ads convert. The ad spy tool shows the ads competitors run on Meta, Google, YouTube and TikTok, so you can study what works before you pay for your own tests.
The numbers stay in your browser: nothing you type is sent to SellWinners unless you press Calculate with JavaScript turned off.