Marketplace Profit

Free Marketplace Profit calculator with clear step-by-step results.

About Marketplace Profit

Returns are the item most often left out of marketplace profit maths. Refunded orders lose their revenue entirely but only half their cost of goods on average, because much returned stock is resaleable - while shipping and advertising are sunk regardless.

Formulas

Revenue kept

Kept = units x price x (1 - return rate)

Net profit

Profit = kept revenue - platform fees - cost of goods - shipping - advertising

Worked example

With the default values below, Marketplace Profit returns Net profit of $3,840.80. Change any input above and every figure here is recalculated in your browser.

Inputs used

Units soldminimum 0: 400
Selling price per unitminimum 0 $: 34.99 $
Landed unit costminimum 0 $: 11.5 $
Platform feeaccepts 0–40 %: 15 %
Shipping and packaging per unitminimum 0 $: 4.2 $
Return rateaccepts 0–50 %: 6 %
Advertising spendminimum 0 $: 1,200 $

Results

Net profit: $3,840.80
Revenue kept after returns: $13,156.24
Platform fees: $1,973.44
Net margin: 29.19% %

Step by step

1Values used
2Revenue kept
3Net profit
4Net profit= $3,840.80
5Revenue kept after returns= $13,156.24
6Platform fees= $1,973.44
7Net margin= 29.19 %

Assumptions and limits

The result is derived only from the 7 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.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

Why is only half the cost of goods lost on a return?

Because much of it comes back saleable. Apparel and unsealed items lose more, sealed hard goods less - adjust the assumption if your category is unusual.

Is advertising spend the right thing to subtract?

Yes if it is attributable to these units. If it also builds brand or drives off-platform sales, allocate only the share attributable to this listing.