Shipping Profit Calculator
Compare shipping revenue collected against the carrier cost actually incurred.
About Shipping Profit Calculator
Margin divides profit by revenue; markup divides the same profit by cost. They are routinely confused, so both are shown — a 50% margin is a 100% markup. Margin is what funds every fixed cost in a delivery business, and mispricing by a few points is the difference between scaling profitably and scaling losses.
Formula
Shipping Profit
Margin % = (Shipping revenue charged to customers − Carrier and packaging cost) ÷ Shipping revenue charged to customers × 100
- Shipping revenue charged to customers
- Money received
- Carrier and packaging cost
- Direct cost of delivering it
Worked example
With the default values below, Shipping Profit Calculator returns Shipping Margin of -14.29%. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Shipping revenue charged to customersminimum 0
- 42,000
- Carrier and packaging costminimum 0
- 48,000
Results
- Shipping Margin
- -14.29%
- Profit
- -$6,000.00
- Markup on Cost
- -12.50%
- Cost as Share of Revenue
- 114.29%
Step by step
- 1Values used
- 2Shipping Profit
- 3Shipping Margin= -14.29
- 4Profit= -6,000.00
- 5Markup on Cost= -12.50
- 6Cost as Share of Revenue= 114.29
Assumptions and limits
- The result is derived only from the 2 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 calculated?
Margin % = (Shipping revenue charged to customers − Carrier and packaging cost) ÷ Shipping revenue charged to customers × 100 Margin divides profit by revenue; markup divides the same profit by cost. They are routinely confused, so both are shown — a 50% margin is a 100% markup.
Why does Shipping Profit matter?
Margin is what funds every fixed cost in a delivery business, and mispricing by a few points is the difference between scaling profitably and scaling losses.
What values do I need to enter?
This calculator takes 2 inputs: Shipping revenue charged to customers, Carrier and packaging cost. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.