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Ecommerce Profitability Calculator

Revenue growth and profit growth are not the same thing. This works through product costs, advertising and overheads to what you actually keep.

Your assumptions All editable
Total sales revenue for the month.
Product cost as a percentage of revenue.
Media spend across all channels.
Shipping, payment fees, software, staff — anything else attributable.
Completed orders for the month.

Method: Gross profit = Revenue − (Revenue × COGS ÷ 100). Net profit = Gross profit − Ad spend − Other costs. Net margin = Net profit ÷ Revenue × 100. ROAS = Revenue ÷ Ad spend. Break-even ROAS = 100 ÷ (100 − COGS %).

Projection

Enter your assumptions to see the projection and the figures behind it.

How this calculator works

Enter monthly revenue, cost of goods as a percentage, ad spend, other costs and order volume. The calculator shows the waterfall from revenue down to net profit, plus your net margin, ROAS, break-even ROAS and profit per order.

The formula

Gross profit = Revenue − (Revenue × COGS ÷ 100). Net profit = Gross profit − Ad spend − Other costs. Net margin = Net profit ÷ Revenue × 100. Break-even ROAS = 100 ÷ (100 − COGS %).

Questions

Shipping, payment processing, software, warehousing and staff — anything attributable to fulfilling those orders. Leaving them out is how stores convince themselves they are profitable.

Because ROAS alone cannot tell you whether advertising is profitable. Break-even ROAS is derived from your margin and is the threshold that actually matters.

Proof this works

An ecommerce account where the maths actually held up at scale — 12x attributed ROAS across the period.

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