Calculate your net profit and margins after TikTok referral fees and shipping.
$
$
$
Enter 0 if customer pays shipping entirely.
%
Currently ~8% for most US categories.
$
Usually $0.30 per order.
Net Profit
$0.00
Profit Margin
0.00%
Total TikTok Fees
$0.00
ROI
0.00%
Fee Breakdown
Total Revenue (Sale Price)$0.00
Commission (Percentage Fee)$0.00
Fixed Transaction Fee$0.00
Product Cost (COGS)– $0.00
Shipping Cost– $0.00
function calculateTikTokFees() {
// Get Input Values
var salePrice = parseFloat(document.getElementById('salePrice').value);
var productCost = parseFloat(document.getElementById('productCost').value);
var shippingCost = parseFloat(document.getElementById('shippingCost').value);
var commissionRate = parseFloat(document.getElementById('commissionRate').value);
var fixedFee = parseFloat(document.getElementById('fixedFee').value);
// Validation: treat empty/NaN as 0
if (isNaN(salePrice)) salePrice = 0;
if (isNaN(productCost)) productCost = 0;
if (isNaN(shippingCost)) shippingCost = 0;
if (isNaN(commissionRate)) commissionRate = 0;
if (isNaN(fixedFee)) fixedFee = 0;
// Calculations
// TikTok Fee = (Sale Price * Rate%) + Fixed Fee
var commissionAmount = salePrice * (commissionRate / 100);
var totalTikTokFees = commissionAmount + fixedFee;
var totalCosts = productCost + shippingCost + totalTikTokFees;
var netProfit = salePrice – totalCosts;
// Margin Calculation (Net Profit / Revenue)
var margin = 0;
if (salePrice > 0) {
margin = (netProfit / salePrice) * 100;
}
// ROI Calculation (Net Profit / Total Investment)
// Investment = COGS + Shipping
var investment = productCost + shippingCost;
var roi = 0;
if (investment > 0) {
roi = (netProfit / investment) * 100;
}
// Update UI
document.getElementById('resultContainer').style.display = 'block';
document.getElementById('netProfitDisplay').innerText = '$' + netProfit.toFixed(2);
document.getElementById('netProfitDisplay').style.color = netProfit >= 0 ? '#ffffff' : '#ffdddd'; // Slightly lighter red text if negative in the red box, but background is red. Actually better to leave white.
document.getElementById('marginDisplay').innerText = margin.toFixed(2) + '%';
document.getElementById('marginDisplay').style.color = margin >= 0 ? '#000' : '#fe2c55';
document.getElementById('totalFeesDisplay').innerText = '$' + totalTikTokFees.toFixed(2);
document.getElementById('roiDisplay').innerText = roi.toFixed(2) + '%';
document.getElementById('roiDisplay').style.color = roi >= 0 ? '#000' : '#fe2c55';
// Breakdown UI
document.getElementById('breakdownRevenue').innerText = '$' + salePrice.toFixed(2);
document.getElementById('breakdownCommission').innerText = '- $' + commissionAmount.toFixed(2);
document.getElementById('breakdownFixed').innerText = '- $' + fixedFee.toFixed(2);
document.getElementById('breakdownCogs').innerText = '- $' + productCost.toFixed(2);
document.getElementById('breakdownShipping').innerText = '- $' + shippingCost.toFixed(2);
}
Understanding TikTok Shop Fees & Profitability
Selling on TikTok Shop offers a massive opportunity to reach millions of engaged users through video content and live streams. However, to run a sustainable business, you must understand the platform's fee structure. The profit margins in social commerce can be tight, and failing to account for commission rates, transaction fees, and shipping costs can quickly erode your earnings.
This TikTok Shop Fee Calculator is designed to help sellers accurately project their earnings per unit. By inputting your selling price, product sourcing costs, and expected shipping fees, you can determine exactly how much cash ends up in your pocket after TikTok takes its cut.
Current Fee Structure (2024 Update)
TikTok Shop periodically updates its fee policies. As of July 2024, the standard structure for most sellers in the US market involves:
Referral Fee (Commission): This has risen to 8% for most categories. This is calculated based on the total order amount paid by the customer.
Fixed Transaction Fee: There is a flat fee of $0.30 per order to cover payment processing.
Note: Fees may vary for specific categories (like electronics or high-ticket items) or for new sellers during promotional periods. Always check the seller center for the most up-to-date rate card for your specific niche.
How to Calculate Your Metrics
Understanding the math behind the calculator is crucial for setting your prices correctly:
1. Net Profit
This is the actual dollar amount you earn. It is calculated as:
Net Profit = Sale Price - (TikTok Commission + Fixed Fee + COGS + Shipping)
2. Profit Margin
Your margin indicates how much of every dollar of sales you keep as profit. A healthy margin on TikTok Shop is typically between 15% and 30%, though dropshippers may see lower margins due to higher COGS.
Margin = (Net Profit / Sale Price) * 100
3. Return on Investment (ROI)
This metric tells you how efficiently your capital is working. It compares your profit to the money you risked (Cost of Goods + Shipping).
Strategies to Improve Margins
If the calculator shows lower profits than you'd like, consider these strategies:
Bundle Products: Since there is a fixed fee of $0.30 per order, selling bundles increases the average order value (AOV) while keeping the fixed fee constant, slightly improving margins.
Negotiate Shipping: If you are self-shipping, negotiate better rates with carriers or use TikTok's shipping services if they offer subsidies.
Increase Perceived Value: Use better video content to justify a higher selling price, which can absorb the 8% commission more effectively.