Profit Margin Calculator
Calculation Results
Net Margin
Net Profit / Order
GMV tells you how much you sold. Net margin tells you whether it was worth selling. On TikTok Shop the gap between gross and net is massive — often 30–50 points once every fee, refund, and commission lands. This calculator shows what a single order is actually worth to you, after everything TikTok (and every affiliate) takes.
Margin Is the Number That Actually Matters
GMV tells you how much you sold. Profit margin tells you whether it was worth selling. On TikTok Shop, the gap between gross and net margin is massive — often 30-50 percentage points once you account for every fee.
A product with a 60% gross margin can easily become a 12% net margin product after TikTok's 8% referral fee, 2% payment processing, a 15% affiliate commission, and shipping. That 12% sounds survivable until a week of higher-than-usual refunds pushes you into the red.
The Fees That Kill Margin
For most TikTok Shop sellers, the margin killers rank like this:
- Affiliate commissions (10–25%): The single biggest variable. A 20% commission on a mid-margin product is devastating.
- COGS (varies): If your landed cost is above 40% of selling price, you're starting in a hole.
- Referral fee (8%): Non-negotiable. It's the cost of being on the platform.
- Payment processing (~2%): Small per order, adds up at volume.
- Refund rate (3–8%): Revenue lost but costs already paid — the silent killer.
The formula
Net Profit = Price × (1 − refund%) − COGS − Shipping − Ads − Price × (8% + 2% + affiliate%)
Net Margin = Net Profit ÷ Selling Price × 100
Worked example: $28 AOV, $8 COGS, 15% affiliate, 5% refunds
| Line item | Amount |
|---|---|
| Selling price | $28.00 |
| Refund loss (5% of $28) | −$1.40 |
| Effective revenue | $26.60 |
| COGS | −$8.00 |
| Shipping | −$5.00 |
| Ad cost / order | −$3.00 |
| Referral fee (8% of $28) | −$2.24 |
| Payment processing (2% of $28) | −$0.56 |
| Affiliate commission (15% of $28) | −$4.20 |
| Net profit / order | $3.60 |
| Net margin | 12.9% |
Benchmarks by category
| Category | Median net margin | Typical affiliate rate |
|---|---|---|
| Beauty & skincare | 18% | 15–20% |
| Health & wellness | 22% | 12–18% |
| Food & beverage | 9% | 10–15% |
| Fashion | 11% | 10–20% |
| Electronics | 7% | 5–10% |
| Home & kitchen | 14% | 12–18% |
Source: anonymized data from 1,200+ Dashboardly-connected TikTok Shops, Jan–Dec 2025. Medians by category, net of refunds, fees, and affiliate commissions.
This estimates margin per order. Dashboardly measures the real margin by SKU from your TikTok Shop data.
See actual net margin per product with refunds, fees, shipping, and commissions baked in. No spreadsheets. No manual math.
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