free tool

The Real Profit Calculator

See your true unit economics after every cost. ROAS alone is a vanity metric. This tool reveals your real profit per order, lifetime customer value, breakeven CPA, and the ROAS you actually need.

your numbers
Input Your Metrics

Order Economics

$

Your average cart value at checkout

%

Sales tax as a percentage of order value

%

What % of your products are returned

Margins & Costs

%

Revenue minus cost of goods sold

$

Shipping, packaging, handling per order

Customer Behavior

%

What % of customers make a repeat purchase

x

Number of repeat purchases per repurchasing customer

the truth
Your Unit Economics

Enter your numbers and click Calculate

to see the truth behind your ROAS

How do you calculate real ecommerce profit per order?

Real profit per order is what remains after cost of goods, taxes, returns, and fulfillment. Start with average order value, subtract taxes and expected returns, apply your gross margin, then subtract fulfillment cost. Add repeat purchases to get profit per customer, which sets your breakeven CPA and the ROAS you need to be profitable.

Roughly 18% of ecommerce margin is commonly hidden by taxes, returns, and fulfillment that revenue-based ROAS never shows.

The formula

Avg Order Value (post tax and returns)

AOV x (1 - tax %) x (1 - return rate %)

Profit per Order

(Gross Margin x Avg Order post tax and returns) - Fulfillment Cost

Profit per Customer (LTV)

Profit per Order + (Profit per Order x repeat %) x repeat frequency

Breakeven ROAS

AOV / Profit per Customer

Worked example

Average order value
$80
Tax
8%
Return rate
10%
Gross margin
60%
Fulfillment per order
$8

Order value after tax and returns is about $66, giving roughly $32 profit per order before repeat purchases. Adding repeat customers raises profit per customer and lowers the ROAS you need to be profitable.

Ecommerce unit economics benchmarks

MetricTypical healthy range
Gross margin (DTC)60% to 80%
Return rate5% to 15%
Repeat purchase rate20% to 40%
Contribution margin per order20% to 35% of AOV

Ranges vary by category. Use them as a sanity check, not a target.

Frequently asked questions

What is a good profit margin for ecommerce?

A gross margin of 60% to 80% is common for direct-to-consumer brands, but the number that matters is contribution margin after returns and fulfillment, which is usually 20% to 35% of order value.

What is breakeven ROAS?

Breakeven ROAS is the return on ad spend at which advertising profit is exactly zero. It equals average order value divided by profit per customer. Anything above it is profit, anything below it loses money.

Why is my real profit lower than my ROAS suggests?

Revenue-based ROAS ignores cost of goods, taxes, returns, and fulfillment. Once those are removed, real margin is often much lower than the top-line ROAS a dashboard reports.

How do repeat purchases change the math?

Repeat orders raise profit per customer, which lowers your breakeven CPA and lets you bid more aggressively to acquire customers while staying profitable.

Benchmarks and formulas last reviewed Q2 2026. Ad Prophet analyzes accounts spending $30K+/month on Google Ads.

Want to improve these numbers?

Ad Prophet AI analyzes your full funnel to find where margin is leaking and where your best customers actually come from.