← All Guides

finance

How Profit is Calculated

Settlement-based profit formula, fee breakdown, and how it differs from estimates.

What is Settlement-Based Profit?

AxonRow calculates profit using actual settlement data from TikTok Shop, not estimates. When TikTok settles an order, they provide the exact fees deducted — platform commission, payment processing, shipping subsidies, and any promotional discounts.

This means your profit numbers in AxonRow reflect real money movement, not projections.

Profit = Settlement Revenue − COGS − Platform Fee − Shipping Fee − Ad Spend

Why It Matters

Most profit tools estimate fees using published rate cards (e.g., “TikTok charges 5% commission”). But actual fees vary per order due to:

  • Promotional campaigns with reduced commission
  • Shipping subsidies that offset your costs
  • Payment processing fee variations by region
  • Seller-funded discounts vs platform-funded discounts

Settlement-based calculation eliminates this guesswork. Your profit numbers match what actually hits your bank account.

How to Read It in AxonRow

Navigate to Finance → Profitability. The profit card on the dashboard shows your net profit for the selected period. Click into any order to see the full fee breakdown from the settlement report.

Profit only appears after an order is settled (typically 7-15 days after delivery confirmation). Orders still in transit show as “Pending Settlement.”

Interactive Example

Adjust the values below to see how each cost component affects your profit:

Try it

Net Profit$42.00
Profit Margin42.0%

Common Mistakes

  • Comparing with estimated profit tools — Other tools may show higher profit because they underestimate fees. AxonRow shows the real number.
  • Ignoring ad spend — Profit without ad attribution gives a false picture. Enable Pro to see profit after ad costs.
  • Looking at unsettled orders — Orders pending settlement don’t have final fee data yet. Filter by “Settled” status for accurate totals.

See these metrics live for your shop

Start Free Trial