Net margin & ROAS calculator

Find what you can afford to spend to win an order. All amounts are in USD, per order, excluding sales tax.

Example numbers are loaded. Replace them with your own costs.

1. What the customer pays

Listed product price ($)Use one product or a representative order consistently.Average discount (%)Shipping paid by customer ($)Leave at 0 when you offer free shipping.

2. What it costs to deliver

Landed product cost ($)What you pay, including inbound freight and duties.Packaging ($)Boxes, labels, inserts, and packing materials.Your average shipping cost ($)Your full outbound carrier cost.Fulfillment / labor ($)Pick-and-pack, warehouse fees, or direct labor.

3. Fees & other expenses

Payment processing (%)Applied to discounted product revenue plus shipping collected.Fixed payment fee ($)Per order; enter your actual processor fees.Marketplace / transaction fee (%)Additional variable fees on the same revenue basis.Returns & replacements allowance ($)Average lost revenue plus extra costs per order, net of recoveries.Other variable costs ($)Affiliates or other costs not included above.Allocated overhead per order ($)Monthly rent, software, salaries, agency fees, etc. ÷ expected monthly orders. Exclude ad spend and costs already entered.

4. Set your profit benchmark

Desired margin after ads (%)The share of revenue you want to keep after all entered costs.ROAS to evaluate (×)Try your current or planned revenue ÷ ad spend.

How the math works

Revenue = listed price × (1 − discount %) + customer shipping. Available before ads = revenue − all entered non-ad costs. Margin before ads = available ÷ revenue. Break-even ROAS = revenue ÷ available.

Target ROAS = revenue ÷ (available − revenue × desired margin). Net margin after ads = (available − revenue ÷ evaluated ROAS) ÷ revenue. Percentages are converted to decimals in these formulas.

Use a consistent average order or a single-product order. Keep the returns allowance separate from discounts and do not count the same expense twice. Overhead per order changes with sales volume. If your processor charges fees on sales tax, include that extra fee in other costs.