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
Ad Settings
Profitability Analysis
NOT PROFITABLE
Losing $37.51 per order at current ad costs
Cost Breakdown Per Order
Daily Potential ($100/day budget)
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:
Raw cost including manufacturing or wholesale price
Amazon: 8-45%, Etsy: 6.5%+, Shopify: 2.9%+30¢
Fulfillment, packaging, and delivery per order
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:
$45
$12
$1.58
$5
$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:
Contribution margin beats achievable CPA by at least 30%
Required ROAS is under 4x (achievable on most platforms)
Daily profit potential justifies ad management overhead
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.
Need Expert Help With Your Numbers?
These calculators give you the data. Our team gives you the strategy.
Frequently Asked Questions
Common questions about using the Ecommerce Profit Calculator
Use This With
Calculate your ideal advertising budget, required leads, breakeven ROAS, and expected profit. Plan profitable ad campaigns with data-driven insights.
Calculate your break-even point, revenue targets, and profit at different volumes. Visualize profitability with interactive charts and scenario comparisons.
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