EarlFlow
EarlFlow

Guide

Ecommerce margin calculator: true net-margin formula

If your margin formula excludes returns, shipping, or acquisition costs, your decisions will be biased. Use the full formula below.

Formula

Net Margin % =
(
  Net Revenue
  - COGS
  - Shipping and Fulfillment
  - Payment and Platform Fees
  - Returns and Refund Impact
  - Ad Spend
) / Net Revenue * 100

Worked example

Net margin amount is $19,000, so net margin percentage is 19%.

Why teams still miss leakage

Even with a formula, manual spreadsheets break when costs change daily across channels and product mix. Teams need continuous monitoring and prioritized actions, not a monthly static report.

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