E-Commerce Break-Even & Profit Margin Matrix

Finance

Know the exact ROAS and CPA that keep a product profitable.

Unit economics

Enter your per-unit costs and price.

Typical card processors charge around 2.9% + $0.30 per transaction.

Gross profit before ad spend

What's left after product, shipping, and payment costs.

Total cost / unit

$15.46

Payment fees / unit

$1.46

Gross profit / unit

$24.53

Gross margin

61.3%

Profit margin matrix

Max ad spend and required ROAS at each margin target.

Margin targetMax ad spend (CPA)Required ROAS
Break-even$24.531.63x
10% profit$20.531.95x
20% profit$16.532.42x
30% profit$12.533.19x

About this tool

Enter your manufacturing cost, shipping, packaging, and payment fees against your sales price, and instantly see your gross margin along with the maximum ad spend (CPA) and required ROAS at break-even and at several profit targets.

How to use E-Commerce Break-Even & Profit Margin Matrix

  1. 1

    Enter your sales price and per-unit manufacturing cost (COGS).

  2. 2

    Add shipping and packaging costs, plus your payment processor's fee.

  3. 3

    Check your gross profit per unit and margin percentage before any ad spend.

  4. 4

    Read the matrix to see the max ad spend and required ROAS at break-even and at 10%, 20%, and 30% profit targets.

Frequently asked questions