Revenue is the starting point
Know what you keep
from every order.
A strong sales day should be worth celebrating. I also want you to know whether discounts, shipping and acquisition costs are taking the value out of it.
Put your order economics on one screen.
Choose a product, offer or order cohort. Enter average realized revenue and costs on the same basis. This is a contribution model, not a forecast of net profit. The starting order is an illustrative example.
Change the offer. See the trade-off. No spreadsheet required.Your inputs are calculated in this browser and are not submitted or saved by this site. Compare offers with the same cost definitions and returns window.
Illustrative example / per order
Amount left per order
$30.00
Your contribution after media, before agency, creative, fixed payroll, rent, financing, taxes and other costs not included above.
Compared with your inputs
Colors describe the figures entered and your chosen targets. They do not grade your whole business or compare it with an industry average.
Contribution per order after media
Yellow · Set your contribution target
$30.00 is left, but the calculator does not know what your remaining costs require. Enter a target that covers those costs and your desired surplus.
- Contribution margin after media
- 25%Contribution ÷ net merchandise revenue
- Net merchandise revenue / media
- 5.00×Same cohort, using net revenue
- Contribution break-even ROAS
- 2.22×Net-revenue basis; no overhead covered
- Media ceiling per order
- $54.00Spending this leaves zero contribution
This order has $54.00 available before media. At 2.22× net-revenue ROAS, media consumes all of it. Your target must leave room for the rest of your business.
Your offer is more than a discount.
Price the whole decision.
Test your proposed discount by reducing net revenue while keeping the relevant costs in place. Then consider a bundle, a threshold or a different product mix. A higher order value only helps if the contribution improves too.
Separate first orders from repeat orders.
A blended order average can hide a weak first-purchase offer. Review new customers, repeat customers and returns separately. Base payback assumptions on observed cohorts; future purchases should not become an excuse for losses you have not planned to fund.
Scale what you can deliver.
Check stock availability, delivery promises, support demand and refund reasons before increasing spend. When an offer is winning, protecting the experience matters just as much as buying more traffic.
Definitions, formulas and the limits of this calculator
- Net merchandise revenue
- Average merchandise revenue after discounts and refunds, excluding sales tax and customer-paid shipping. Use consistent cohort totals divided by the same order count. Refunds are already reflected here; do not deduct the refunded revenue twice.
- Shipping subsidy
- Shipping cost absorbed by your business after shipping payments from customers. This tool accepts a subsidy of zero or more and does not model profit from shipping fees. Include return-shipping costs if applicable.
- Contribution after media
- Net merchandise revenue − product cost − shipping subsidy − fulfillment and other variable costs − transaction fees − media cost. It is not net profit. Include variable commissions or returns-processing costs where applicable without double counting.
- Break-even ROAS
- A multiple, not a profit percentage: 4× ROAS means $4 of revenue per $1 of ad spend. Net merchandise revenue ÷ contribution before media. This is equivalent to 1 ÷ premedia contribution margin. It covers the entered variable costs and media only. Compare it only with a return measured on the same net-revenue and attribution basis, not an unmatched platform ROAS.
- A return without attribution
- If you allocate all media across all orders, revenue ÷ media is a blended efficiency ratio, not proof that advertising caused those sales. The calculator does not measure incrementality or cross-channel attribution.
- Your contribution target
- Divide the remaining costs you need to cover, plus your desired surplus, by a realistic order volume for the same period. That gives you a starting contribution target per order. Review it as volume and product mix change. Green means this entered order meets your entered target; it does not prove the business is profitable.
- No finite break-even
- If the order has zero or negative contribution before media, no positive media budget can produce a contribution break-even result at those economics. A $0 media ceiling does not mean the underlying order is profitable.
Ready to look beyond the order? Measure CAC, MER and total marketing cost across your business.
