TikTok Shop profit calculator.
What do you actually keep per unit after TikTok fees, costs and VAT? Most sellers find out their margin is not what they thought.
Assumes 20% VAT on a standard-rated product and fees charged on the customer-paid price. VAT reclaimable on fees and costs is excluded, so real margin is usually slightly better than shown. Contribution is before business overheads and tax. Estimates, not advice.
How the numbers work.
Fees come off first
TikTok's referral fee scales with the order, so it belongs in the per-unit maths, not in a monthly marketing lump.
One sixth is not yours
A VAT-registered seller hands one sixth of a standard-rated price to HMRC. The calculator sets it aside before profit.
The conservative choice
Input VAT on fees and costs is usually reclaimable. The calculator ignores that reclaim, so the number you see leans low, not high.
Questions the calculator raises
The three things sellers ask right after running the numbers. If the result surprised you, the TikTok Shop accounting page explains how we keep it right monthly.
Book a CallWhat fees does TikTok Shop charge UK sellers?
TikTok Shop charges a referral/commission fee as a percentage of each order, and depending on your setup you may also pay for Fulfilled by TikTok, shipping programmes and ads. Rates vary by category and have changed several times since launch, so the calculator lets you set your own percentage — check Seller Center for the rate that applies to your account rather than relying on a number from a blog post.
Why does the calculator deduct VAT from my selling price?
If you're UK VAT registered and selling standard-rated goods, one sixth of the customer-paid price is output VAT that belongs to HMRC, not to you. Sellers who treat the full price as revenue systematically overstate their margin by 16.7% — it's the single most common error we find in TikTok Shop books.
Is my real margin higher or lower than this estimate?
Usually slightly higher, because VAT charged on TikTok's fees and on many of your costs is reclaimable if you're VAT registered — the calculator deliberately ignores that reclaim to stay conservative. But returns, samples, promotions and payment adjustments pull the other way. Settlement-level bookkeeping is the only way to know your true blended margin.
Margin surprise you?
If the number above does not match what your books say, settlement timing, fees and VAT are the usual suspects. Reconciling them is what we do every month.
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