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Monthly business economics

Monthly Profit Calculator

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.

Platform-neutral: use this for Shopify, dropshipping, TikTok Shop, marketplaces or direct ecommerce. Enter your real monthly costs rather than relying on one universal fee assumption.

Monthly Revenue & Orders

⚡ Real-time update
$
Per-order variable costs
$
$
$
$
Percentage costs
%
%
Monthly acquisition & overhead
$
$
$
Monthly Net Profit
$0.00
Net Margin
0.0%
ROAS
—
CPA
—
Avg Order Value
$0.00
Annualized Profit
$0
Product + Shipping:$0.00
Platform / Payment Fees:$0.00
Refund Reserve:$0.00
Other Variable Costs:$0.00
Ads + Fixed Monthly Costs:$0.00
Gross Profit Before Ads/Overhead:$0.00
Break-even Orders:—
Break-even Revenue:—
Planning estimate. Taxes, working capital, inventory timing, chargebacks and owner compensation may require separate modeling.

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Choose a tool only when its workflow fits your store and its benefit can justify the cost. These links do not change your calculation.

Affiliate disclosure: ProfitCalcTools may earn a commission if you use one of these links, at no additional cost to you. How recommendations work

Quick formula

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 →
Interactive calculator

1. Convert monthly sales into bottom-line profit

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.

Mathematical formulas

2. Monthly profit and break-even formulas

Average Order Value = Monthly Revenue ÷ Orders
Contribution per Order = AOV − Product Cost − Shipping − Per-Order Fees − Refund Reserve − Other Variable Costs
Monthly Net Profit = Monthly Revenue − Total Variable Costs − Ad Spend − Subscriptions − Fixed Overhead
Net Margin (%) = Monthly Net Profit ÷ Monthly Revenue × 100
Break-even Orders = Fixed Monthly Costs ÷ Contribution per Order

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.

Worked scenario and cost table

3. Example: $12,000 monthly revenue

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 typeExample monthly amountBehavior
Product + shipping$4,950Mostly variable with orders
Payment/platform fees$438Mix of percentage and per-transaction cost
Refund reserve$360Planning allowance tied to revenue
Advertising$2,400Entered here as monthly spend
Subscriptions + overhead$600Primarily 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.

FAQ and structured data

4. Monthly profit calculator FAQ

What is monthly net profit?

It is modeled revenue minus all variable costs and the monthly advertising, subscription and overhead costs entered in the calculator.

How is break-even revenue calculated?

The model estimates the orders required for contribution to cover fixed monthly costs, then multiplies those orders by average order value.

Is profit the same as cash flow?

No. Inventory purchases, payout delays, taxes, debt and working capital can make cash movement different from profit.

Should ad spend be fixed or variable?

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.

From a monthly total to a decision

Monthly profit example: what changes the result?

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 resultAmount
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%)

Compare three assumptions without mixing them

ScenarioChange from the exampleMonthly profit
Base caseAds $2,400; refund reserve 3%$2,952
Higher advertising costAds increase to $3,000$2,352
More refundsReserve 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 up to three scenarios on this page

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.

Break-even revenue is conditional

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.

Profit is not the same as cash in the bank. Inventory purchases, payout delays, taxes, debt payments and owner withdrawals can create a cash shortfall even in a profitable model.

Example and arithmetic reviewed 4 September 2026. How we calculate and check results.

Profit is not the same as available cash

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.