Formula
Net Profit = Revenue − COGS − Shipping − Ad Spend − Overhead − (Revenue × Fee %)
FAQ
What should I include in COGS?
Anything directly tied to each unit sold: product purchase or manufacturing cost, inbound freight, duties, and unit-level packaging.
Why are payment fees calculated as a percentage?
Most processors (Stripe, PayPal, Shopify Payments) charge a percentage of each sale plus a small fixed fee. Using your effective average rate keeps the estimate accurate without per-order data.