Turn monthly revenue and orders into net profit, margin, ROAS, CPA, break-even sales and annualized profit after product costs, shipping, fees, ads and overhead.
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Net Profit = Revenue − variable costs − ad spend − subscriptions − fixed overhead.
Break-even Orders = fixed monthly costs ÷ contribution profit per order before those fixed costs.
Plan paid-ad break-even ROAS →The calculator above starts with monthly revenue and order count, then subtracts both variable and fixed costs. Variable costs include product cost, shipping, percentage processing/platform fees, fixed transaction charges, refund reserves and other costs per order. Fixed monthly costs include advertising budget, subscriptions and overhead. The sticky results card keeps monthly net profit, net margin, ROAS, average order value, contribution and break-even revenue visible while you change assumptions. This makes it easier to separate a revenue problem from a cost-structure problem.
Break-even revenue then multiplies break-even orders by average order value. This is a scenario model: it assumes average order value and contribution per order remain broadly stable as volume changes. If scaling requires higher discounts, more support staff or less efficient ads, recalculate with those new assumptions.
Suppose a store earns $12,000 from 300 orders, so average order value is $40. Product cost is $12 per order, shipping is $4.50, other variable cost is $1, and the fixed payment charge is $0.30. Model percentage fees at 2.9% of revenue and a 3% refund reserve. Product and shipping consume $4,950, other variable costs $300, percentage plus fixed payment fees $438, and the refund reserve $360. That leaves $5,952 before monthly advertising and overhead. If ads are $2,400, subscriptions $200 and other overhead $400, modeled net profit is $2,952, or a 24.6% margin.
| Cost type | Example monthly amount | Behavior |
|---|---|---|
| Product + shipping | $4,950 | Mostly variable with orders |
| Payment/platform fees | $438 | Mix of percentage and per-transaction cost |
| Refund reserve | $360 | Planning allowance tied to revenue |
| Advertising | $2,400 | Entered here as monthly spend |
| Subscriptions + overhead | $600 | Primarily fixed in this scenario |
If ad spend increases to $3,000 and revenue does not change, modeled profit falls by $600. If the extra ad spend also creates more orders, update revenue and orders rather than changing ad cost alone.
It is modeled revenue minus all variable costs and the monthly advertising, subscription and overhead costs entered in the calculator.
The model estimates the orders required for contribution to cover fixed monthly costs, then multiplies those orders by average order value.
No. Inventory purchases, payout delays, taxes, debt and working capital can make cash movement different from profit.
This page treats the entered ad budget as a monthly amount. Use the break-even ROAS calculator when you need a per-order acquisition threshold.
See the profit versus cash-flow guide and methodology for assumptions and scope.
Revenue is the starting point, not the amount available to spend. This example uses $12,000 revenue from 300 orders, or $40 per order. Product cost is $12, shipping $4.50, other variable cost $1, and a fixed payment fee $0.30 per order. Percentage fees are 2.9% of revenue, with a 3% refund reserve.
| Monthly cost or result | Amount |
|---|---|
| Product and shipping | $4,950 |
| Other variable costs | $300 |
| Percentage and fixed payment fees | $438 |
| Refund reserve | $360 |
| Contribution before ads and overhead | $5,952 |
| Ads + subscriptions + overhead | $3,000 |
| Monthly net profit | $2,952 (24.6%) |
| Scenario | Change from the example | Monthly profit |
|---|---|---|
| Base case | Ads $2,400; refund reserve 3% | $2,952 |
| Higher advertising cost | Ads increase to $3,000 | $2,352 |
| More refunds | Reserve rises to 6% of revenue | $2,592 |
These scenarios keep revenue and every other cost unchanged. Real advertising changes may also affect orders, so model that change separately. The refund reserve here is a planning percentage of revenue, not an automatic forecast of returned units.
Save the current result, change an assumption, then save again. Scenarios stay in this open page and are cleared on reload; no account or business-data upload is needed.
In the base case, contribution is $19.84 per order. Covering $3,000 of fixed monthly spending requires 151.21 orders, rounded up to 152 complete orders. The unrounded break-even revenue is $6,048.39. This assumes the same average order value and contribution per order while treating the entered monthly advertising budget as fixed.
For a per-sale advertising decision, use the break-even ROAS calculator. For Shopify subscription allocation, use the Shopify profit calculator. For supplier quotations, use the dropshipping profit calculator.
Example and arithmetic reviewed 4 September 2026. How we calculate and check results.
300 orders at $50 revenue and $38.25 variable cost leave $3,525 contribution. After $600 fixed costs, modeled monthly profit is $2,925. At zero orders, those fixed costs still produce a $600 loss.
Buying inventory for future orders or waiting for payouts can still consume cash. The guide reconciles this positive profit with a $10,875 cash outflow under its stated assumptions.
See the profit-to-cash reconciliation →
Original hypothetical worked example. Read the guide for all assumptions, formulas and exclusions.