GMV Calculator
Gross Merchandise Value (GMV) is the total value of merchandise sold through a platform or marketplace before deducting platform fees, returns, or other adjustments. It is the primary scale metric for marketplace businesses like Etsy, eBay, and Shopify, and is used by investors to evaluate growth trajectory and market penetration. This calculator computes GMV from the number of transactions and average order value, and also calculates the implied platform revenue at any take rate you specify.
GMV formula
GMV = Number of Orders * Average Order Value Platform Revenue = GMV * (Take Rate / 100)
For a direct-to-consumer store, GMV equals total revenue (net of returns). For a marketplace, GMV is the total transaction volume and revenue is only the fees earned.
GMV in context
- GMV growth rate is a key indicator of marketplace health. Year-over-year GMV growth above 20% is generally considered strong for an established platform.
- GMV per active seller and GMV per active buyer are useful density metrics for two-sided marketplaces.
- Gross profit from GMV depends on take rate and product margins. A high GMV with a low take rate may generate less revenue than a smaller GMV with a higher take rate.
- Track GMV by category to identify growing and shrinking product segments.
GMV: frequently asked questions
What is gross merchandise value (GMV)?
GMV is the total sales dollar value of merchandise sold through a marketplace or platform over a given period, before deducting any fees, returns, or discounts. It measures the overall volume of commerce flowing through the platform.
Is GMV the same as revenue?
No. For marketplace businesses, GMV is the total value of transactions, while revenue is the fees the marketplace earns on those transactions. If a platform charges 10% and has GMV of $1,000,000, its revenue is $100,000.
Why do investors care about GMV?
GMV is the top-of-funnel indicator of a marketplace's scale and growth trajectory. Rapidly growing GMV signals network effects are working, even if the platform is not yet profitable. It is used to compare marketplace scale across businesses.
How do returns affect GMV?
GMV is typically reported as gross (before returns). Net GMV or Net Merchandise Value subtracts returns and cancellations. Always clarify which definition is being used when comparing across companies or reporting periods.
How is GMV used to calculate take rate?
Take rate = Revenue / GMV. If a marketplace earns $5 million in platform fees on $50 million GMV, its take rate is 10%. Take rate is a key metric for evaluating how much of the commerce volume translates to revenue.
Official sources
- U.S. Census Bureau, E-Stats: census.gov/programs-surveys/e-stats.
- U.S. Census Bureau, Monthly Retail Trade: census.gov/retail.
Reviewed by the CalculatorHub team, edited by James Graham, 15 June 2026. See our methodology.