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Home / Calculators / E-commerce & Dropshipping Profit Margin & ROAS Calculator

E-commerce & Dropshipping Profit Margin & ROAS Calculator

Analyze true bottom-line profitability for your Shopify, DTC, or TikTok Shop e-commerce business. Accurately accounts for product COGS, packaging & carrier shipping, paid customer acquisition costs (Meta/TikTok Ads CPA or target ROAS), payment processor fees (Stripe/Shopify Payments), and refund reserves to calculate true net margin and breakeven advertising benchmarks.

E-COMMERCE, DROPSHIPPING & SHOPIFY (US)

E-commerce & Dropshipping Profit Margin & ROAS Calculator

Calculate your true net take-home profit per order factoring in product COGS, paid ad spend (Meta/TikTok CAC), payment processing, and return reserves.

11. Unit Pricing & Product Costs

$
$
$

$0.00 if you offer Free Shipping

$

22. Customer Acquisition Cost (Paid Ads)

$

33. Gateway Processing & Return Reserves

%

Standard Shopify Payments / Stripe: 2.9% + $0.30

%
True Order Unit Economics
$8.08True Net Profit Per Order
20.2%True Net Margin
Maximum Allowable CPA (Breakeven CAC)$22.58
Minimum Breakeven ROAS1.77x

📈 Monthly Scaled Financial Forecast

600 pedidos/mês
Gross Revenue:$23.994
Total Paid Ad Spend:-$8.700
Total Product COGS:-$5.700
Net Take-Home Monthly Cash:$4.598
💡 The Topline Revenue Trap in E-commerce

Bragging about $100,000 monthly revenue is meaningless if ad spend consumes $50,000 (ROAS 2.0x), COGS takes $30,000, and returns/gateways eat another $10,000. Healthy DTC brands target a minimum 18% to 25% True Net Margin.

How it works

1

Enter your product retail price and landed unit manufacturing or supplier cost (COGS).

2

Set your advertising acquisition metrics: either target ROAS or average Cost Per Acquisition (CPA / CAC).

3

Verify merchant payment gateway charges (default 2.9% + $0.30) and expected return/chargeback rate.

4

Examine true net profit per order, net profit margin %, maximum allowable CPA, and scaled monthly cash projections.

Frequently asked questions

What is Breakeven ROAS and how do you calculate it?

Breakeven ROAS is the minimum Return on Ad Spend required to cover all product, fulfillment, and payment gateway costs. Calculated as: Retail Price ÷ Gross Profit Before Ads. If your breakeven ROAS is 2.2x, any campaign delivering 2.0x is operating at a net cash loss.

What is a healthy net profit margin for a direct-to-consumer (DTC) brand?

Sustainable e-commerce businesses target a True Net Margin of 15% to 25% after paid advertising. Margins below 10% leave zero buffer for seasonal advertising CPM spikes or rising freight rates.

What is Maximum Allowable CPA (Breakeven CAC)?

It is the maximum dollar amount your business can spend to acquire a single paying customer without losing money on that transaction. Any ad spend below your max CPA represents pure operating profit.

Why must e-commerce sellers reserve funds for returns and chargebacks?

US e-commerce return rates average 3% to 8% (and up to 20% in apparel). Factoring in a return allowance ensures you don't overspend on ads based on phantom gross sales that will later be refunded.

Is this tool free?

Yes. The site is supported by ads, so you never pay or need to create an account.

Does it work on mobile?

Yes. The page adapts to your screen and does not require installing any app.