About the Calculator
Calculate your net profit and profit margin—including all marketplace, transaction, and other fees—so you can price smarter on TikTok Shop.
TikTok Profit Calculator
Wondering “is TikTok profitable?” Enter your numbers to discover real net profit, margin %, and a transparent fee breakdown—instantly.
Running a TikTok Shop can be profitable if you understand your margins. Many sellers focus on trends and traffic but forget to factor in every fee. This calculator breaks down each cost component and shows you exactly how much you earn per sale. No guesswork. No hidden fees. Just a clear number that helps you set the right price, scale your business, and grow confidently.
Use a more powerful TikTok Shop profit calculator for free
You can access an upgraded version of this TikTok Shop profit calculator inside our free SimpTok app. It lets you save scenarios, compare SKUs, and keep fee defaults current. We built it so any seller can model real margins and price with confidence without adding friction to the workflow.
How this calculator works
Start by entering your product cost and your planned selling price on TikTok Shop. Add every fee that touches the order such as platform commission, payment processing, shipping, packaging, creator or affiliate payouts, and any other fixed amount you pay per order. Press calculate and review the net profit and profit margin per order. Adjust price, cost, and fees until you hit a margin that can support ads, creator commissions, and returns without stress.
Why this calculator matters
Most sellers guess on margin and then wonder why the month ends in the red. Fees compound in ways that are not obvious when you change price by a few dollars or add a small coupon. This calculator forces clean math before you scale. It shows how much you actually keep after commission, payment fees, and fixed costs so you can make a clear decision about price, bundles, creator payouts, and ad budgets. The result is a pricing plan that survives real traffic rather than a perfect spreadsheet.
Is TikTok Shop profitable in 2025
Yes when you design for profit first and scale second. Validate every SKU here before you spend on creators or ads. A steady hundred daily orders at a thirty percent margin usually beats a one time spike of a thousand orders at eight percent. Use this tool to separate vanity revenue from healthy profit.
The three forces that drive TikTok Shop profit
Contribution margin is the money left after platform commission, payment fees, shipping, packaging, and other fixed charges. Aim for at least thirty percent for most physical goods. Raise price if the market allows, trim cost of goods, use lighter packaging, and favor bundles that spread fixed fees across more revenue.
Velocity is the number of units you move each day. TikTok Shop rewards consistent creative and strong hooks. Pair one hero SKU with reliable creators and refresh short form video on a tight rhythm to protect click through and conversion.
The retention loop is your repeat purchase engine. Inserts and post purchase direct messages help you build a private list so you can bring customers back. Even a ten percent reorder rate can double annual profit when contribution margin is solid.
Benchmarks that help you set targets
For products with an average order value under twenty dollars, many brands keep margin in the thirty five to forty five percent range to cover fixed fees. In the twenty to fifty dollar range, thirty to forty percent often works. Above fifty dollars, twenty five to thirty five percent can be enough if return rates stay low and shipping is efficient. Treat these as starting points and tune them with your own numbers.
Creator payouts vary by influence and category. Light affiliates often work between five and fifteen percent of revenue. Mid tier creators can sit between ten and twenty five percent. Top tier talent can push into the twenties and sometimes adds a flat fee. Put the number you actually negotiate into the calculator so you see the full impact on contribution margin and break even CPA.
A simple way to think about break even ROAS and target CPA
Contribution margin per order equals price minus cost of goods minus fixed fees minus price multiplied by the sum of percent based fees. The margin rate equals contribution margin divided by price. Break even ROAS equals one divided by the margin rate. Break even CPA equals contribution margin per order.
If you want profit on the first order, keep your average CPA below that contribution margin or raise price until the math clears with cushion.
Worked example
Imagine a price of thirty dollars and cost of goods of ten dollars. Assume percent based fees of eight point one eight percent which is a common total for platform commission and processing. Add a fixed thirty cents for processing. The contribution margin equals thirty minus ten minus zero point three zero minus thirty times zero point zero eight one eight. That is thirty minus ten minus zero point three zero minus two point four five four which comes to seventeen point two four six dollars. The margin rate is seventeen point two four six divided by thirty which is about fifty seven and a half percent. Break even ROAS is about one point seven four. Break even CPA is about seventeen dollars and twenty five cents. If your traffic cannot hit that ROAS or that CPA, raise price, build a bundle that lifts average order value, or lower cost of goods before you scale spend.
Modeling creators and affiliates without guesswork
Creator and affiliate economics are easy to underestimate because the percentage looks small. Put the exact percentage or flat payout into the calculator as another fee. Recalculate margin and your new break even CPA. If margin collapses, switch to bundles, raise price, or limit discount stacking before you add traffic. Tie creator bonuses to net revenue after fees when possible so incentives align with your true profit.
Shipping and packaging choices that lift profit
Every gram and every centimeter matters. Smaller mailers and lighter inserts often unlock a cheaper shipping tier and reduce breakage. Stock close to your buyers when cross border shipping eats margin. Communicate delivery windows clearly so expectations match reality. A predictable delivery promise reduces refunds and chargebacks which protects margin more than any clever coupon.
A practical pricing playbook for TikTok Shop
Use good better best lineups where a premium bundle anchors the page and a mid tier offer carries volume. Build bundles that make sense to the customer such as a hero item paired with a refiller or a complementary add on. Spread your fixed fees over more revenue and watch contribution margin improve. Test round numbers against charm prices because some niches prefer clean prices while others respond to ninety nine endings. Guard against coupon stacking by planning to a target net price after discounts so margin stays intact even during promotions.
Product ideas with strong margin potential
Refillable beauty minis travel with very light weight and generate repeat purchase. Pet enrichment toys often carry an average order value above twenty five dollars and create reaction content that fuels discovery. Compact home fitness accessories avoid the high return rates of heavy equipment. Eco cleaning concentrates ship small and build a reliable reorder base. Digital goods such as printable planners and templates have near zero cost of goods and predictable fulfillment. Model each of these in the calculator and drop any idea that does not clear twenty percent margin after fees unless you have a clear path to higher average order value or better sourcing.
Dropshipping and when it makes sense
Dropshipping is useful for proof of concept but margins under twelve percent are common when you do not control supply or the customer list. If a SKU shows traction, shift to private label or bulk purchasing. You will usually add fifteen to twenty points of margin, speed up delivery, and gain control over packaging and inserts that drive the retention loop.
Digital products and services
The calculator works well for non physical offers. Set cost of goods close to zero if fulfillment is instant and model refunds realistically. If you sell services, treat labor time as a cost per order so you do not inflate margin on paper.
Taxes and VAT basics
If tax is included in the displayed price, subtract it from revenue in your model so you do not overstate margin. If tax is added at checkout, treat it as pass through and keep it out of the margin math. Document the rule you use so your team models SKUs the same way. Confirm details with an accountant for your market.
Returns refunds and chargebacks
Returns lower realized average order value and raise handling cost. Track return rate by SKU and include a realistic assumption in your plan. Clear policies and accurate photos reduce disputes. Sizing guides, care instructions, and honest delivery windows are not glamorous, yet they often deliver the cheapest margin gains on the table. Watch reason codes and fix the top three drivers. This is one of the fastest ways to lift profit without touching price.
Inventory planning and cash flow
Use contribution margin to plan buys. Higher margin SKUs tolerate slower turns and longer shipping times. Lower margin SKUs need tight turns or a higher velocity target to work. Do not overload inventory on products that only sell during short seasonal spikes without a plan for price protection or bundles to move excess stock.
Common mistakes that quietly erase profit
Copying a competitor price without fee math. Allowing creators to stack discounts that wipe out margin. Shipping weight creep from unnecessary inserts. Modeling without returns and chargebacks. Treating a one week viral spike as a baseline. The calculator helps you spot these traps before they show up in your bank account.
Mini case study
A brand sells a twenty four ninety nine pet toy with nine fifty cost of goods. Percent based fees total eight point one eight percent and fixed fees are thirty cents. Contribution margin is a little above thirteen dollars. A creator takes a twenty percent commission which removes five dollars and leaves a little above eight dollars. That eight dollars and change becomes the break even CPA. The brand introduces a two pack bundle at thirty nine ninety nine with the same unit cost and ships in a single mailer. Contribution margin rises, creator commission is spread over more revenue, and break even CPA climbs above fourteen dollars. Profit per order improves while conversion remains strong because the perceived value of the bundle is clear.
Quick launch checklist
Margin after fees clears your target for the average order value of the SKU. Break even ROAS and break even CPA are documented and everyone on the team knows the guardrails. The return policy is simple and fits the category. Packaging is dialed in for the cheapest weight tier you can hit without hurting the unboxing experience. A backup price test is ready if actual CPA lands above plan.
TikTok Shop and YouTube compared in plain language
Physical goods often net more profit on TikTok Shop because checkout lives inside the content. Fewer click outs mean better conversion and lower dependence on paid traffic. YouTube can work well for creators with deep communities and high trust but the revenue share and the extra step to purchase can compress margin. Run the same price cost and fee assumptions through both models. Pick the channel that delivers the strongest contribution margin at the velocity you can realistically sustain.
Keep your defaults fresh
Platform commission and processing fees do change over time and sometimes by category and country. Confirm your current numbers in Seller Center and update your calculator inputs at least once a month. The SimpTok app refreshes defaults for common markets, yet you should always verify the figures that apply to your specific account.
Ready to optimize your TikTok Shop
Stop guessing. Price with intent. Use this calculator to validate every SKU, set clear guardrails for ads and creators, and grow with fewer surprises. When you are ready to save scenarios and compare products side by side, the free SimpTok app is available and takes only a minute to get started.
Frequently asked questions
Can I save or export my calculations
Results appear instantly on the page. To store scenarios or export them for your team, use the free SimpTok app where you can organize SKUs and compare versions over time.
Where do I find the current TikTok Shop commission rate for my category
Open Seller Center and visit the section for fees and commissions. Rates vary by country and category, so check before you finalize a price change.
Does this work for live selling and affiliate driven sales
Yes. If creators or affiliates take a percentage or a flat payout, add that number as another fee so your margin reflects the true cost of the sale.
How should I account for ad spend
First calculate profit after platform and processing fees. Then subtract your planned cost per acquisition. Use the break even ROAS and break even CPA formulas above to set guardrails for campaigns and creator deals.
How do I model coupons and discounts
Enter the final price the shopper pays after all discounts. Modeling the post coupon price prevents you from overstating margin.
Can I use this for bundles
Yes. Enter the bundle price and the combined cost of goods. Fixed fees are paid once per order which often improves contribution margin.
What about shipping that is paid by the buyer
If the buyer pays separate shipping, you can enter zero for your shipping cost. If you offer free shipping, keep your actual shipping cost as a fixed fee so the model remains honest.
How should I handle VAT or sales tax
If tax is built into the displayed price, subtract it from revenue in your model. If tax is added at checkout, treat it as pass through. Confirm the correct approach with your accountant.
Does this support digital products and services
Yes. Set cost of goods to zero or near zero for digital files and model expected refunds. For services, treat labor as a cost per order to avoid inflated margins.
How often should I revisit my inputs
Monthly is a good rhythm. Update fees, shipping costs, and return rates, then refresh your break even CPA and ROAS so your ads and creator deals stay inside profitable lanes.