Shipping Profit Impact Calculator

Shipping Profit Impact. Calculate how shipping charged to the customer versus actual shipping cost changes profit per order.

Formula reviewed September 1, 2026 · Runs locally in your browser

Shipping charged to customer ($)Actual shipping cost ($)Orders

Enter your numbers and calculate.

Worked example

Charging $8 when fulfillment costs $11 creates a $3 shipping subsidy per order. Across 100 orders that reduces profit by $300.

Treat free or subsidized shipping as a real order cost rather than assuming it disappears because the customer does not see it.

No. The shipping cost still has to be absorbed somewhere in product margin or pricing.

Yes if the amount collected exceeds actual shipping cost, subject to platform rules and customer expectations.