The decision guide / 12 calculators

Ecommerce & profit

Understand pricing, order economics, and the gap between what you charge and what you keep.

Worksheet / 01 / 6 tools

Price the sale. Understand what remains.

Choose whether you need a currency amount, a share of revenue, or an increase over cost. These are different questions, even when the inputs look similar.

Product Profit

Subtract itemized product, delivery, transaction, advertising, and other costs from the matching sales revenue.

Use this for a currency profit amount on one product or order cohort. Use profit margin for that profit as a percentage of revenue.

Open Product Profit

Profit Margin

Calculate net profit as a share of revenue after deducting the full cost total you supply.

Use this for a bottom-line margin with all expenses included. Use contribution margin when you want to subtract only variable costs.

Open Profit Margin

Gross Margin

Calculate the revenue share left after cost of goods sold, before operating expenses.

Use gross margin for direct product economics. It is intentionally narrower than the existing profit margin, which deducts the complete supplied expense total.

Open Gross Margin

Markup

Measure the increase from unit cost to selling price as a percentage of cost, not as a margin on revenue.

Use markup for cost-plus pricing and supplier comparisons. Use profit margin when the denominator should be sales revenue.

Open Markup

Contribution Margin

Find the percentage of revenue remaining after variable costs to support fixed expenses and profit.

Use this to study order economics or cost-volume behavior before fixed overhead. Use net profit margin for an all-expense bottom line.

Open Contribution Margin

Discount

Apply a single percentage discount to an original price and calculate the remaining selling price.

Use this to find a final price from a known percentage discount. Use markup or product profit to assess whether that price is economically viable.

Open Discount

Worksheet / 02 / 4 tools

Set the spending and volume boundaries.

Work backward from contribution to an ad-spend threshold, an acquisition ceiling, a price floor, or the sales volume needed to cover fixed costs.

Break-Even ROAS

Find the revenue-to-ad-spend ratio that uses up an order's contribution after product, shipping, and transaction costs.

Use this before setting a ROAS target when you know order economics, rather than to measure a campaign's reported return.

Open Break-Even ROAS

Maximum CAC

Set a first-order acquisition budget after subtracting variable costs and the profit you want to preserve.

Use this to set an affordable acquisition ceiling from order economics. Use CAC to measure what you actually spent per new customer.

Open Maximum CAC

Break-Even Price

Find the unit price needed to recover fixed costs and variable unit cost at a chosen sales volume.

Use this for a simple volume-based floor price. Add desired profit separately, and use break-even units when price is already known.

Open Break-Even Price

Break-Even Units

Find the minimum whole units needed to cover fixed costs at a specified price and variable cost per unit.

Use this for a sales-volume target with fixed and per-unit costs. Use break-even ROAS for an advertising-efficiency threshold.

Open Break-Even Units

Worksheet / 03 / 2 tools

Read order and stock economics.

Check the size of an average order and how quickly inventory moves. Neither measure on its own tells you whether the sales are profitable.

Average Order Value

Divide net order revenue by completed orders to measure average basket revenue for a consistent sales cohort.

Use AOV for revenue per order. Use ARPU for revenue per user and CAC for acquisition cost per new customer.

Open Average Order Value

Inventory Turnover

Compare cost of goods sold with average inventory at cost to measure stock turnover during a defined period.

Use this to assess how frequently stock is sold and replaced. Use AOV or product profit for sales-basket and profitability questions.

Open Inventory Turnover

From calculation to decision

Choose the right lens.

Read the result alongside its definition, not as a standalone score.

How we document formulas and limitations

Setting a new price?

Markup starts with cost; margin starts with revenue. Check product profit with the full delivery and acquisition costs before treating a cost-plus price as profitable.

Deciding how much to spend on a sale?

Break-even ROAS consumes the contribution left before ads. Maximum CAC can preserve a supplied profit reserve. Neither automatically credits a future repeat purchase.

Planning a promotion or a larger order?

Calculate the discounted price first, then recheck contribution and break-even volume. Average order value and stock turnover describe activity, not cash availability.

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