How to Calculate Cd Interest

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E-commerce Profit & ROI Calculator

Calculate your net margins, total profit, and ROAS to optimize your online store.

Total Revenue:
Gross Profit per Unit:
Net Profit:
Net Profit Margin:
ROAS (Return on Ad Spend):

How to Calculate E-commerce Profitability

Understanding your numbers is the difference between a scaling business and one that burns through cash. To find your true profitability, you must look beyond the "Gross Margin" and account for variable costs like shipping, merchant fees, and customer acquisition costs (CAC).

The Core Formulas

  • Total Revenue: Selling Price × Units Sold
  • Gross Profit per Unit: Selling Price – (COGS + Shipping)
  • Net Profit: Total Revenue – (Total COGS + Total Shipping + Ad Spend + Platform Fees)
  • Net Margin: (Net Profit / Total Revenue) × 100

Realistic Example:

Imagine you sell a gadget for $100. Your factory cost is $30 and shipping is $10. You spend $1,000 on Facebook Ads to sell 50 units. Your platform (Shopify/Stripe) takes 3%.

  • Total Revenue: $5,000
  • Total Variable Costs: ($30+$10) × 50 = $2,000
  • Platform Fees: $150
  • Net Profit: $5,000 – $2,000 – $1,000 – $150 = $1,850
  • Net Margin: 37%
  • ROAS: 5.0x

Why ROAS and Net Margin Matter

High ROAS (Return on Ad Spend) doesn't always mean high profit. If your product margins are thin, a 4x ROAS might still result in a loss after shipping and labor. Use this calculator to find your "Break-even ROAS"—the point where your ad spend is covered by your gross margin.

function calculateEcomProfit() { var price = parseFloat(document.getElementById('sellingPrice').value) || 0; var cost = parseFloat(document.getElementById('productCost').value) || 0; var shipping = parseFloat(document.getElementById('shippingCost').value) || 0; var ads = parseFloat(document.getElementById('adSpend').value) || 0; var units = parseFloat(document.getElementById('unitsSold').value) || 0; var feePercent = parseFloat(document.getElementById('otherFees').value) || 0; if (units <= 0 || price 0 ? (totalRevenue / ads) : 0; // Display Results document.getElementById('resultArea').style.display = 'block'; document.getElementById('resRevenue').innerText = '$' + totalRevenue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resGrossPerUnit').innerText = '$' + grossPerUnit.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); var netProfitEl = document.getElementById('resNetProfit'); netProfitEl.innerText = '$' + netProfit.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); netProfitEl.className = 'result-value ' + (netProfit >= 0 ? 'profit-positive' : 'profit-negative'); document.getElementById('resMargin').innerText = netMargin.toFixed(2) + '%'; document.getElementById('resROAS').innerText = ads > 0 ? roas.toFixed(2) + 'x' : 'N/A (No Ad Spend)'; // Smooth scroll to results document.getElementById('resultArea').scrollIntoView({ behavior: 'smooth', block: 'nearest' }); }

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