eCommerce Profitability Calculator: Uncover Your True Profit

Are your ad campaigns truly turning into profit? Many eCommerce businesses focus on revenue, but neglect the hidden costs that eat away at margins. Our eCommerce Profitability Calculator helps you quickly model whether your ad spend is generating real, sustainable profit—after accounting for crucial expenses like payment fees, shipping, software subscriptions, and platform charges. This tool is designed to give you a transparent view of your financial health, empowering you to make data-driven decisions for smarter growth.

🧲 eCommerce Profit Calculator

📊 Profit Breakdown

Sales (ex VAT): R

AOV (ex VAT): R

Orders:

COGS: R

Gross Profit: R

📦 Cost Breakdown:

Ad Spend: R

Payment Fees (4%): R

Shipping: R

Email Marketing: R

Team Salaries: R

Platform Cost: R

Total Expenses: R

💰 Net Profit: R

How to Use the Calculator: Your Step-by-Step Guide

Getting clarity on your profitability is simple. Follow these steps to generate your instant financial breakdown:

  1. Enter Your Ad Spend (Excl. VAT): Input the total amount you're investing in paid advertising platforms like Meta (Facebook/Instagram) or Google, excluding any VAT.
  2. Set Your Target ROAS (Return on Ad Spend): This is your ideal revenue generated for every rand spent on ads. For example, if you spend R100,000 and expect R750,000 in sales, your target ROAS is 7.5.
  3. Input Your Average Order Value (AOV): Enter the average rand value of each customer order. You can specify whether this value includes or excludes VAT.
  4. Define Your COGS % (Cost of Goods Sold): Express your total product cost (including manufacturing, packaging, and direct inbound shipping) as a percentage of your revenue.
  5. Estimate Other Operating Costs: Account for your regular operational expenses that aren't directly tied to individual sales. This can include:
    • Monthly shipping costs (beyond per-order fees)
    • Email marketing tool subscriptions
    • Team salaries
    • Other overheads
  6. Select Your eCommerce Platform:
    • Shopify: Our calculator dynamically accounts for Shopify's tiered transaction fees, which are often overlooked.
    • WooCommerce / Custom: If you're on a self-hosted or custom platform, simply enter your consistent monthly hosting and maintenance costs.
  7. Click "Calculate": Instantly receive a clear breakdown of your projected sales, total costs, and crucial net profit figure.


Why True Profitability Matters More Than Just Revenue

It's easy to celebrate high sales figures, but revenue alone doesn't tell the full story. Many brands find themselves revenue-rich but cash-poor because they haven't accounted for all their expenses.

This calculator helps you:

  • Reveal the Impact of Discounts: See how aggressive discounting or lower-than-ideal ROAS directly erodes your profit margins.
  • Understand Your Breakeven Point: Clearly identify the minimum performance required to cover your costs.
  • Quantify Profit per Rand: Understand precisely how much net profit you generate for every R1,000 you invest in your business.

Key Assumptions & Notes for Accurate Modelling

To provide you with a robust estimate, our calculator incorporates the following standard assumptions. You can adjust your inputs to reflect your specific business model:

  • Payment Processing Fees = 4%: We've modeled an average payment processing fee of 4% of gross sales. This considers:
    • Typical providers like PayFast (~2.95% + R1.50 per transaction).
    • "Buy Now, Pay Later" services (e.g., PayFlex, PayJustNow), which can range up to 5.5%.
    Please note: Larger businesses might negotiate lower rates.
  • Shipping Costs = Flat per Order: The calculator allows for a flat shipping cost per order, giving you flexibility to factor in courier fees, insurance, rural delivery surcharges, or any other per-shipment expenses.
  • Shopify Fees = Base Plan + % of Gross Sales (Incl. VAT): Unlike some basic calculators, we account for both your fixed monthly Shopify plan fee and the percentage Shopify charges on your gross sales (including VAT), ensuring a comprehensive cost calculation.

Pro Tip: Stress Test Your Business Scenarios

Don't just calculate your current state! Use this tool to experiment with different "what-if" scenarios:

  • What if your ROAS drops? Try lowering your target ROAS to 5.5 and see the impact on your net profit.
  • What if your AOV changes? Decrease your Average Order Value by 10% to understand the sensitivity of your profitability.
  • What if costs increase? Adjust your COGS or other operating costs to model the impact of supplier price hikes or increased overheads.

These exercises can reveal critical insights into your business's resilience and help you strategize for various market conditions.


Ready to Optimize Your Profitability?

Understanding your numbers is the first step. If you're looking to actively improve your ROAS, boost your Average Order Value, and maximize your net profit, we can help.

⚡ Book a Strategy Call – Let's discuss your unique business challenges and opportunities.

Or, Learn How We Help Brands Grow Smart – Explore our tailored solutions for sustainable eCommerce success.