Expected profit per order
Profitable$12.75
Average profit across successful and refunded orders.
E-commerce Profit Calculator
Calculate your real e-commerce profit after product costs, shipping, payment fees, platform fees, advertising, returns, and other expenses. See profit per order, margin, break-even CPA, and break-even ROAS.
Currency is for display only. Platform fee is a percentage you enter; this tool does not include marketplace-specific fee tables. Taxes are not calculated unless you add them as another cost.
Inputs
Formatting only. The formulas do not convert currencies.
Advanced return assumptions
These are conservative starting points, not universal rules. Edit them to match how your business actually recovers costs after a refund.
100% assumes you cannot recover the product at cost. Use a lower rate if you restock it.
100% assumes outbound shipping and packaging are already spent.
100% assumes processors keep fees after a refund. Lower this if your processor returns fees.
Results
Profit margin
26.8%
Expected profit divided by expected revenue after refunds.
Break-even CPA
$24.75
Maximum advertising cost per order that keeps expected profit at zero.
Break-even ROAS
1.92x
Expected revenue after refunds divided by break-even CPA. This is not a platform-reported ROAS figure.
Expected revenue per order
$47.50
Total expected variable cost per order
$34.75
Monthly net profit
$1,275.00
Expected profit per order times orders, minus monthly fixed expenses.
Break-even selling price
$36.16
Selling price that sets expected profit per order to zero, holding other inputs fixed.
Estimated ROI on variable cash costs
38.6%
Expected profit divided by product, fulfillment, packaging, ads, and other variable costs. Not a revenue ROI.
Breakdown
| Item | Amount |
|---|---|
| Gross order revenue | $50.00 |
| Expected refund impact (revenue refunded) | -$2.50 |
| Expected product cost | -$15.00 |
| Expected shipping / fulfillment | -$5.00 |
| Expected packaging | -$1.00 |
| Expected payment fees | -$1.75 |
| Expected platform fees | -$0.00 |
| Advertising | -$12.00 |
| Other variable costs | -$0.00 |
| Expected profit | $12.75 |
Formula and methodology
Formula
Gross order revenue = selling price + shipping charged to the customer.
Payment fee = gross revenue × payment percentage + fixed payment fee. Platform fee = gross revenue × platform percentage.
Successful-order profit = gross revenue − product cost − fulfillment shipping − packaging − payment fee − platform fee − advertising − other variable cost.
Refunded-order profit = 0 − (product cost × product-cost-lost rate) − ((fulfillment shipping + packaging) × shipping-lost rate) − ((payment fee + platform fee) × fee-lost rate) − advertising − other variable cost.
Expected profit per order = (1 − refund rate) × successful-order profit + refund rate × refunded-order profit.
Profit margin = expected profit per order ÷ expected revenue, where expected revenue = (1 − refund rate) × gross revenue. If expected revenue is 0, margin is not applicable.
Assumptions
Expected profit per order is an average across successful and refunded orders. A 5% refund rate does not mean you subtract 5% of revenue from an otherwise successful order and leave it at that; refunded orders have their own cost recovery assumptions.
Payment and platform percentage fees are applied to selling price plus shipping charged. Advertising and other variable costs are treated as already spent on refunded orders.
Monthly fixed expenses change monthly net profit only. They are not allocated into profit per order or break-even CPA.
Default return assumptions are conservative: 100% of product cost, fulfillment/shipping/packaging, and payment/platform fees are treated as lost on a refunded order. Change them if your operation recovers inventory or fees.
What is included
Product cost, inbound/outbound fulfillment shipping, packaging, payment fees, an optional platform percentage you enter, advertising CPA, other variable costs, expected refunds, and optional monthly fixed expenses.
What is excluded
Income taxes, sales tax collection, marketplace-specific fee schedules, currency conversion, and inventory financing. Add taxes only if you enter them as another cost yourself.
How to read the results
Break-even CPA is the most you can spend on ads per order and still expect to break even after return risk. It is the expected pre-ad contribution per order, floored at zero. If that contribution is already negative, advertising is not the only problem.
Break-even ROAS is expected revenue after refunds divided by that break-even CPA. It is not the same as profit, and it is not automatically comparable to a platform-reported ROAS unless the revenue definitions match.
Worked example
These figures are an illustration, not recommended prices or fees. They are calculated from the same engine as the tool, using: selling price $50.00, shipping charged $0.00, product cost $15.00, fulfillment shipping $5.00, packaging $1.00, payment fee 2.9% + $0.30, platform fee 0%, ad CPA $12.00, and a 5% return rate with conservative 100% cost-loss assumptions.
- Expected profit per order: $12.75
- Profit margin: 26.8%
- Break-even CPA: $24.75
- Monthly net profit at 100 orders and no fixed expenses: $1,275.00
Frequently asked questions
What is e-commerce profit?
Here it means expected cash contribution after product, shipping, fees, ads, other variable costs, and the chance of a refund—not accounting profit after taxes or overhead unless you enter those costs.
What costs should I include?
Include every cost that changes with an order: COGS, pick/pack or supplier shipping, packaging, payment fees, any platform percentage you pay, ads, and inserts or pick fees. Put rent and salaries in monthly fixed expenses.
What is break-even CPA?
The advertising cost per order at which expected profit per order is zero, after return assumptions. Spend more than that and the average order loses money.
What is break-even ROAS?
Expected revenue after refunds divided by break-even CPA. Higher required ROAS means you need more revenue per ad dollar to cover costs. It is not a profit metric by itself.
How do returns affect profit?
Refunded orders typically return the selling price but still leave some costs behind. The calculator mixes successful and refunded outcomes using the refund rate and the advanced recovery percentages you set.
Does this calculator include taxes?
No. It does not estimate sales tax, VAT, or income tax. If you want tax in the model, add the amount you bear as another variable cost or as part of monthly fixed expenses.
Related tools
For Shopify plan and payment-fee presets, use the Shopify Profit Calculator. For advertising thresholds without entering a CPA, use the Break-Even ROAS Calculator. To solve a selling price from a target margin, use the Product Pricing Calculator. For sourced Etsy listing, transaction, and payment fees, use the Etsy Fee Calculator. For United States TikTok Shop referral fees and creator commission, use the TikTok Shop Fee Calculator. See all listed tools on the calculators page.