Guide

How to calculate TikTok Shop profit

Your TikTok Shop revenue isn't your profit. Here is every deduction to subtract, in order, so you can see what each product really earns.

The formula

TikTok Shop profit, line by line

  1. Gross salesWhat customers paid for your products, before discounts you fund.
  2. − Seller-funded discounts & vouchersPromotions you pay for. Platform-funded discounts don't reduce your revenue.
  3. − TikTok referral & transaction feesTaken from every settled order.
  4. − Affiliate commissionsPaid to creators who sold through their videos or lives.
  5. − Shipping & fulfillmentLabel costs, FBT warehousing and handling fees.
  6. − Refunds & returnsReversed sales plus fees and shipping you don't get back.
  7. − AdvertisingGMV Max and other ads, whether taken from payouts or charged to your card.
  8. − Product cost (COGS)Your unit cost multiplied by the units actually shipped.
  9. = Net profitWhat you really keep.

Common mistakes

Where sellers get it wrong

Let Margilla do the maths

Margilla is an official TikTok Shop Partner app. It reads every settlement from your shop, applies your product costs and shows true profit per order, product and day.

FAQ

Frequently asked questions

What fees does TikTok Shop charge?

The main deductions are the referral (commission) fee, transaction or payment processing fee, affiliate commission, shipping costs, seller-funded vouchers and promotions, and any fulfillment or warehousing charges such as FBT. The exact rates depend on your country and category, so use your settlement statements rather than a fixed percentage.

Is my TikTok Shop payout the same as profit?

No. The payout is what TikTok sends after its fees, but you still need to subtract the cost of the products you sold, ad spend paid by card, packaging and other business expenses.

How do refunds affect profit?

A refund reverses the sale, but some fees and the shipping cost may not come back, and a returned item may not be resellable. Count refunds against the original order so the right product and period carry the loss.

Can I calculate TikTok Shop profit in a spreadsheet?

Yes, using the formula on this page and your settlement export. It gets slow once you have hundreds of orders, affiliates and returns, which is why sellers use a connected tool that reads settlements automatically.

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