Ecommerce Profit & Ads Feasibility Calculator

Ecommerce Profit & Ads Feasibility Calculator

Calculate your net profit per order, breakeven CPA, required ROAS, and daily profit potential. Know if your product is profitable before spending on ads.

Product Details

0% (Own store)45% (Marketplace)

Ad Settings

0.5%15%

Profitability Analysis

NOT PROFITABLE

Losing $37.51 per order at current ad costs

Net Profit/Order
-$37.51
Breakeven CPA
$22.49
Required ROAS
2.22x
Current ROAS
0.83x

Cost Breakdown Per Order

Product Cost$15.00
Platform Fees (15%)$7.50
Shipping$5.00
Ad CPA (CPC $1.5 / 2.5% CR)$60.00
Total Cost/Order$87.50
Selling Price$49.99

Daily Potential ($100/day budget)

Daily Clicks
67
Daily Orders
1.67
Daily Profit
-$62.51
Monthly Profit
-$1,875

This product is NOT profitable at current ad costs

Your CPA of $60.00 exceeds your margin before ads of $22.49. Either reduce CPC, improve conversion rate, lower costs, or increase price.

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How to Calculate Ecommerce Product Profitability

Before spending a single dollar on advertising, you need to know whether your product can be profitable at scale. Many ecommerce businesses discover too late that their margins can't support customer acquisition costs.

Our calculator models the complete unit economics — including all costs, fees, and ad expenses — so you can make informed decisions about which products to promote.

Understanding True Cost Per Order

Your true cost per order includes components many sellers overlook:

Product Cost (COGS)

Raw cost including manufacturing or wholesale price

Platform Fees

Amazon: 8-45%, Etsy: 6.5%+, Shopify: 2.9%+30¢

Shipping Cost

Fulfillment, packaging, and delivery per order

Customer Acquisition (CPA)

Ad cost ÷ conversion rate (CPC ÷ CR)

Hidden Margin Killer

A product with 60% gross margin might only have 5-10% net margin once platform fees and ad costs are factored in.

What ROAS Do You Actually Need?

Required ROAS = Selling Price ÷ Margin Before Ads. If your price is $50 and margin before ads is $25, you need at least 2.0x ROAS to break even.

Key Insight

Products need at least 50% margin before ads to be viable for paid advertising. Below that, required ROAS becomes unrealistically high.

Real-World Ecommerce Example

DTC brand product analysis:

Selling Price

$45

Product Cost

$12

Platform Fees (3.5%)

$1.58

Shipping

$5

Margin Before Ads

$26.42 (58.7%)

With $1.50 CPC and 2.5% conversion rate, CPA is $60 — exceeds the entire selling price!This product cannot be profitably advertised at those ad costs.

The Fix

Improve conversion rate to 3.5%+ (CPA drops to $42.86), reduce CPC through better creative, or bundle products to increase AOV.

When Is a Product Worth Advertising?

A product is worth advertising when ALL conditions are met:

Margins exceed CPA

Contribution margin beats achievable CPA by at least 30%

Realistic ROAS

Required ROAS is under 4x (achievable on most platforms)

Profit justifies effort

Daily profit potential justifies ad management overhead

Growth potential

Repeat purchase potential or upsell opportunities exist

Common Mistake

If your numbers don't work, don't force it. Focus on improving margins, conversion rates, or finding products with better unit economics.

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Frequently Asked Questions

Common questions about using the Ecommerce Profit Calculator

Net profit per order = Selling Price - Product Cost - Platform Fees - Shipping Cost - Advertising Cost Per Acquisition. For example, if you sell for $50, with $15 product cost, $5 platform fees, $5 shipping, and $10 CPA, your net profit is $15 per order (30% margin).
Your required ROAS depends on your profit margins. If your margin (before ads) is 50%, you need at least 2x ROAS to break even. For 30% margins, you need 3.33x. Most successful ecommerce businesses target 3-5x ROAS on Meta/Google Ads, but your specific target should be based on your unit economics.
Platform fees (Amazon: 15-40%, Shopify: 2.9%+30¢, Etsy: 6.5%+fees) directly reduce your profit margin per order. A product with 50% gross margin on your own store might only have 35% on Amazon. Always factor in all platform fees when calculating whether a product is viable for paid advertising.
A good CPA should be less than your contribution margin (selling price minus all costs except advertising). If your contribution margin is $20, your CPA must be under $20 to break even. Ideally, your CPA should be 30-50% of your contribution margin to maintain healthy profitability.
A product is worth advertising if: (1) Contribution margin exceeds realistic CPA for your market, (2) Required ROAS is achievable (under 4-5x), (3) Daily profit potential justifies ad management overhead, (4) Product has repeat purchase potential or upsell opportunities. Our calculator evaluates all these factors.

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