Ecommerce Profit & Break-Even •

Estimate ecommerce profit, margin, and break-even price per order

Step 1 · Enter price and core costs

Selling price per order (USD) Total order value your customer pays for a typical order. Product + platform cost (USD) COGS, packaging, shipping label, and per-order fees before ads.

Step 2 · Ads and returns assumptions

Ad spend per order (USD) Average marketing cost to acquire one order. Use 0 if organic. Return / refund rate (% of orders) Estimated share of orders fully refunded (e.g., 5 for 5%).

Ecommerce profit summary

Enter per-order numbers · USD only

Add your selling price, costs, ad spend, and return rate to see profit, margin, and break-even price per order.

Assumptions: Single average ecommerce order in USD with per-order costs, ad spend, and a simple return rate. Product + platform cost includes COGS, fulfillment, shipping label, and variable platform/payment fees. Ad spend is averaged per completed order (for example CAC divided by orders). Return rate is the % of orders fully refunded; revenue is reduced but core costs and ad spend still apply. Net profit per order = Net revenue after returns − (product/platform cost + ad spend). Break-even price solves for the selling price that makes net profit per order exactly $0 at the chosen assumptions. Does not model partial refunds, restocking fees, fixed overhead, or taxes. Estimates only.

Updated: November 22, 2025

How to use this ecommerce profit and break-even calculator

This ecommerce profit calculator gives you a quick, realistic view of how much money you actually keep from each order after product costs, platform fees, ad spend, and returns. It also shows the margin % and the break-even price you need to charge for a typical order so that you at least stop losing money.

1. Start with your selling price and core costs

In the first step, enter the selling price per order — the total a customer pays at checkout for a typical order. Then add your product + platform cost. This should bundle everything that scales with each order: product cost, packaging, pick & pack, shipping label, and variable platform or payment fees. Fixed overhead like software subscriptions or salaries is usually handled separately.

2. Add your marketing cost per order

Next, fill in ad spend per order. If you know your customer acquisition cost (CAC), you can use that number directly. Otherwise, estimate it by taking your total ad spend over a period and dividing it by the number of paid orders it produced. If a product is sold only through organic traffic or email, you can leave this field at zero or add a small blended estimate.

3. Factor in returns and refunds

Returns quietly crush margins for many ecommerce brands. Use the return / refund rate field to capture that effect. Enter the percentage of orders that end up fully refunded (for example, 5 for 5%). The calculator assumes that refunded orders still incur your product and shipping costs and that their revenue is lost, which is a conservative but realistic way to model returns.

4. Read the profit, margin, and break-even outputs

The results box shows your net profit per order after all entered costs, plus the margin % on net revenue after returns. You’ll also see the break-even price per order — the minimum selling price required so that you neither make nor lose money at your current cost structure, ad spend, and return rate. Use this to sanity-check whether your price points leave enough room once reality (fees and returns) is included.

5. Run “what if” scenarios for pricing and CAC

Try adjusting price, product cost, and ad spend to see how your unit economics respond. For example, increase your selling price by a few dollars, test a lower return rate, or plug in the CAC you would like to hit and see what break-even price that implies. The Copy summary button gives you a clean text snapshot you can paste into a pricing doc, spreadsheet, or a quick message to your team.

This tool is designed for fast planning and what-if analysis, not for bookkeeping. Always compare the results against your real reports inside your ecommerce platform and analytics tools, and talk to your accountant or finance advisor before making big pricing or budget changes.

How the ecommerce profit math works

This calculator models profitability on a per-order basis using a few simple inputs. Let P be the selling price per order in USD, C the product + platform cost per order (COGS, shipping label, variable fees), A the ad spend per order, and q the return / refund rate expressed as a decimal (for example 0.05 for 5%).

Because some orders are refunded, the calculator reduces effective revenue. The expected net revenue per original order is:

Net revenue after returns = P × (1 − q)

Your variable cost per order combines product/platform cost and ad spend:

Total variable cost per order = C + A

Net profit per order is then:

Net profit per order = P × (1 − q) − (C + A)

The margin shown in the results is the net profit as a percentage of net revenue after returns:

Margin % = (Net profit per order ÷ Net revenue after returns) × 100

To find the break-even price — the price where net profit per order is exactly zero — the calculator rearranges the equation above and solves for P:

Break-even price = (C + A) ÷ (1 − q) (as long as q < 1)

In other words, higher product costs, ad spend, or return rates all push your break-even price up. Dropping any of them lowers the price you need to charge to stay profitable.

References and further reading

Understanding profit margins for ecommerce – Overview of gross margin, net margin, and how to benchmark your store.
Key ecommerce metrics and unit economics – How CAC, AOV, and return rates affect long-term profitability.