Ecommerce Gross Margin
Remove COGS, shipping and fees from revenue to see margin.
About Ecommerce Gross Margin
Online gross margin strips goods, delivery and payment fees from revenue, giving the profit left before marketing and overhead. Marketplace commissions and shipping silently consume the headline product margin, so true store margin is what ad budgets can actually afford.
Formula
Ecommerce Gross Margin
Gross margin = (revenue - direct costs) / revenue x 100
- direct costs
- COGS plus shipping and transaction fees
Worked example
With the default values below, Ecommerce Gross Margin returns Total Direct Costs of $52,600.00. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Revenueminimum 0
- 100,000
- Cost of goods soldminimum 0
- 40,000
- Shipping and packagingminimum 0
- 9,000
- Transaction and platform feesminimum 0
- 3,600
Results
- Total Direct Costs
- $52,600.00
- Gross Profit
- $47,400.00
- Gross Margin
- 47.40%
Step by step
- 1Values used
- 2Ecommerce Gross Margin
- 3Total Direct Costs= 52,600.00
- 4Gross Profit= 47,400.00
- 5Gross Margin= 47.40
Assumptions and limits
- The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax or compounding frequency into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
How is Ecommerce Gross Margin calculated?
Gross margin = (revenue - direct costs) / revenue x 100 Online gross margin strips goods, delivery and payment fees from revenue, giving the profit left before marketing and overhead.
Why does Ecommerce Gross Margin matter?
Marketplace commissions and shipping silently consume the headline product margin, so true store margin is what ad budgets can actually afford.
What values do I need to enter?
This calculator takes 4 inputs: Revenue, Cost of goods sold, Shipping and packaging, Transaction and platform fees. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.