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E-Commerce & Shopify Net Profit Calculator

Calculate true e-commerce net profit margins factoring in product COGS, ad spend (ROAS), shipping, and payment fees.

Unit Economics Inputs

Retail Selling Price ($)

Product Cost (COGS) ($)

Ad Spend / CPA ($)

Shipping & Packaging ($)

Monthly Orders:500 units/mo

Net Profit & Margins

Net Profit / Unit

$16.24

Net Margin %

32.5%

Monthly Net Profit (500 units/mo):$8,120

Break-Even Ad ROAS:1.60x ROAS

Mathematical Calculation Formula:Net Profit = Revenue - (COGS + Ad Spend + Shipping + Payment Fees)

How to Use This Calculator

1Enter your product selling price and Cost of Goods Sold (COGS).
2Input your estimated Customer Acquisition Cost (Ad Spend / CPA) and shipping expenses.
3View your real Net Profit, Net Margin %, and minimum required ROAS to break even.

Key Features & Capabilities

Comprehensive cost breakdown: COGS, Ad Spend, Payment Fees (2.9%+0.30), Shipping, and Returns.
Calculates exact Break-Even ROAS (Return on Ad Spend) required to stay profitable.
Instant visual profit distribution pie and margin indicator.

DTC Unit Economics & Margin Health

E-Commerce Profitability Blueprint: Blended ROAS, CAC & Net Take-Home

In DTC (direct-to-consumer) e-commerce, high revenue often conceals zero net profit. True profitability requires accounting for product landed cost (COGS), pick-and-pack fulfillment, paid social ad acquisition (Meta/TikTok CAC), payment processing fees (2.9% + $0.30), and customer return rates (typically 5% to 15%).

Breakeven Return on Ad Spend (ROAS) Benchmark Table

Product Gross Margin %	Breakeven ROAS	Target Scaling ROAS (20% Net Profit)
40% Gross Margin	2.50x	5.00x
50% Gross Margin	2.00x	3.33x
65% Gross Margin	1.54x	2.22x
80% Gross Margin (High-Ticket / Cosmetics)	1.25x	1.67x

Compare Shopify store unit economics with Amazon marketplace fulfillment on our Amazon FBA Calculator or master margin formulas with our Percentage & Markup Calculator.

Frequently Asked Questions

What is a healthy profit margin for Shopify and e-commerce?

A healthy net profit margin for e-commerce after ad spend, shipping, and COGS is typically between 15% and 25%. Margins above 30% are considered exceptional.

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