What does one order really leave you?
Enter your price and costs. The calculator takes out product cost, shipping, payment and platform fees, returns and ad spend, and shows your profit per order, margin and break-even ROAS.
Per order you ship
Contribution profit per order
$0
| Revenue kept (after returns) | $0 |
| Product cost of kept orders | $0 |
| Packaging | $0 |
| Shipping label | $0 |
| Payment processing | $0 |
| Platform fee | $0 |
| Return labels | $0 |
| Ad cost | $0 |
| Contribution profit | $0 |
Every figure is an average per order shipped
Not every order you ship turns into a sale you keep. Some delivered orders are returned. So the calculator works with shares:
Then, for one order shipped:
Assumptions. Products that come back through a return are treated as resellable, so only kept orders carry product cost. If some come back damaged, raise the return label cost to cover it. Payment processing and platform fees are charged on every order and are treated as not returned when you refund the customer. Sales tax is left out entirely: you collect it for the state, so it is neither revenue nor cost.
Example: with the starting figures, 95 of 100 orders are kept, so revenue is $38.00 per order shipped. Take away $11.40 product, $1.00 packaging, $6.50 label, $1.50 processing, $0.80 platform fee and $0.35 of return labels, and $16.45 is left before ads. After $5 of ads, you keep $11.45, a 30.1% margin.
These are estimates for planning. Your real fees depend on your payment processor, plan, carrier rates and returns policy.
Profit calculator questions
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What is contribution profit?
It is what one order leaves you after the costs that come with that order: the product, packaging, the shipping label, payment and platform fees, returns and the ads that brought it in. Rent, salaries and software are not included. Contribution profit has to be positive before those fixed costs can be covered.
Why does the calculator count shipping on orders that are returned?
Because you pay for them. A returned order still costs the outbound shipping label and packaging, plus the return label to bring it back. The calculator spreads these losses across every order you ship.
What is break-even ROAS?
ROAS is return on ad spend: order value divided by what you spent on ads to get it. Break-even ROAS is the lowest ROAS at which an order still makes $0 profit. If your ads run below it, every extra order loses money. Here it is measured on the selling price before sales tax, and counts orders before any return.
Why is sales tax left out?
In the US, prices are usually shown before sales tax, and the tax is added at checkout. The sales tax you collect belongs to the state and is passed on when you file, so it isn't revenue. Enter your selling price before tax, and the calculator never counts the tax as yours.
Can AjVik show me this for every product automatically?
Yes. AjVik's profitability engine reads your real orders, shipping charges, returns and ad spend, then shows contribution profit per product and per sales channel. You don't need to maintain a spreadsheet.
See this for every product, from real orders.
AjVik's profitability engine shows contribution profit per product and per channel. Try it for 7 days.
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