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Calculate ecommerce profit per order

Enter the selling price and every cost that comes with one order, including ad spend divided by orders. The result is the order's contribution before fixed overhead.

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How to use

  1. Enter price, product cost, shipping and packaging.
  2. Enter percentage and fixed fees, refund rate and ad cost per order.
  3. Read the breakdown.

Worked example

Price $100, cost $45, shipping $6, packaging $2, payment fee 3%, platform fee 4%, ads $20 per order: profit $20.00 (20%), profit before ads $40.00, break-even ROAS 2.50. With 10% refunds and half the cost restocked: $12.25.

Supported formats and limits

InputPrice, costs, fees, refund rate, ad cost
OutputProfit per order, margin, breakdown chart
EngineDeterministic formulas with explicit refund treatment

Limitations

  • Refunds are modelled as lost revenue; fees, shipping, packaging and ad costs are not recovered. Set the share of product cost you recover by restocking returns.
  • This is profit per order before fixed overhead (rent, salaries, software), not total company net profit. There is no tax field: enter prices without sales tax or VAT.

Questions

How are refunds or returned goods modeled?

The refund rate is the share of orders refunded. That share of the price is lost, while fees, shipping, packaging and ad cost are still paid. You set how much of the product cost comes back by restocking. With 10% refunds and half the cost restocked, the 20.00 example drops to 12.25.

What does the result include?

Profit = price kept after refunds minus product cost, shipping, packaging, payment fees (percent of price plus a fixed fee), platform fees (percent of price) and ad cost. A price of 100 with 60 of those non-ad costs and 20 ad cost leaves 20 (a 20% margin). Overhead such as rent and salaries is not included.

How much can I spend on ads per order?

Profit before ads is the most you can spend on ads per order and still break even, and break-even ROAS is price ÷ profit before ads. In the example that is 40 and 2.50.

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