E-Commerce Seller Profit Margin & Break-Even ROAS Calculator

Determine your exact profit per order after COGS, marketplace fees, fulfillment, and ad CPA—plus your true Break-Even ROAS.

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Pre-Ad Margin & Break-Even ROAS by Selling Price

Assumptions: 40% COGS, 15% platform fee, $6.50 shipping unit economics
As of: November 2026

$30 Price (40% COGS, 15% fee)Margin $7.0 (BEP ROAS 428%)
$50 Price (40% COGS, 15% fee)Margin $16.0 (BEP ROAS 312%)
$80 Price (40% COGS, 15% fee)Margin $29.5 (BEP ROAS 271%)
$120 Price (40% COGS, 15% fee)Margin $47.5 (BEP ROAS 252%)
$200 Price (40% COGS, 15% fee)Margin $83.5 (BEP ROAS 239%)

Why Break-Even ROAS Is Your Most Important E-Commerce Metric

Break-Even ROAS equals `1 / Pre-Ad Profit Margin %`. If your $48 product leaves $19.20 after COGS, fulfillment, and referral fees (a 40% pre-ad margin), your Break-Even ROAS is 2.50x (250%). Any ad campaign running below 2.50x ROAS loses money on the first order.

Boosting Net Margin via Average Order Value (AOV) Bundles

Because fulfillment costs and ad acquisition costs (CPA) are largely fixed per transaction, introducing 2-pack or 3-pack bundles raises AOV and often increases net profit per order by 60% to 120%.

FAQ

How do you calculate Break-Even ROAS?
Divide your Selling Price by your Pre-Ad Profit per unit. For example, $48 price ÷ $16 pre-ad profit = 3.0x (300%) Break-Even ROAS.
What is a healthy net profit margin for Amazon FBA or Shopify?
Successful private-label sellers typically target a 45%–55% pre-ad contribution margin and a 15%–25% net profit margin after PPC advertising.
When is it okay to run ads below Break-Even ROAS?
Only when selling high-retention consumable products where second and third repeat purchases push Customer Lifetime Value (LTV) well above initial CPA.

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