Shipping Profit Margin
Check whether shipped orders still make a profit.
About Shipping Profit Margin
Charging for shipping does not guarantee profit; the fee must exceed your real shipping cost, which includes packaging and pickup surcharges. Flat-rate and free shipping offers silently convert profitable orders into losses, so checking this per order catches underpriced delivery.
Formula
Shipping Profit Margin
Profit per order = price + shipping charged - product cost - shipping cost
- shipping cost
- What you actually pay to send the parcel
Worked example
With the default values below, Shipping Profit Margin returns Total Cost per Order of $16.50. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Product priceminimum 0
- 30
- Product costminimum 0
- 12
- Shipping chargedminimum 0
- 6
- Shipping cost to youminimum 0
- 4.5
Results
- Total Cost per Order
- $16.50
- Profit per Order
- $19.50
- Profit Margin
- 65.00%
Step by step
- 1Values used
- 2Shipping Profit Margin
- 3Total Cost per Order= 16.50
- 4Profit per Order= 19.50
- 5Profit Margin= 65.00
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 Shipping Profit Margin calculated?
Profit per order = price + shipping charged - product cost - shipping cost Charging for shipping does not guarantee profit; the fee must exceed your real shipping cost, which includes packaging and pickup surcharges.
Why does Shipping Profit Margin matter?
Flat-rate and free shipping offers silently convert profitable orders into losses, so checking this per order catches underpriced delivery.
What values do I need to enter?
This calculator takes 4 inputs: Product price, Product cost, Shipping charged, Shipping cost to you. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.