Free tool · E-commerce
Marketplace profit and break-even ROAS calculator What do you keep from each sale?
Enter your sale price, product cost, marketplace fees and shipping. See net profit per sale, margin, markup, break-even price and the most you can spend on ads per sale, updated as you type.
Runs entirely in your browser. What you type is not sent anywhere and is not stored.
How to use it
How to calculate marketplace profit
The current figures from your seller dashboard are all you need. Every field is per unit sold.
- 01
Pick your marketplace
The tab only changes the field hints. Fees vary by category and change over time, so none are built in.
- 02
Enter price and cost
Enter the sale price the customer pays and your landed product cost. If your price includes VAT or sales tax, enter the rate so it is removed first.
- 03
Add the fees
Enter the referral or transaction fee as a percentage, any fixed per-order fee, payment processing and shipping, all from your seller dashboard.
- 04
Add ads and other costs
Add your ad spend per sale and other costs such as returns or packaging as a percentage. Leave ads at zero if unsure; the calculator works out your ad ceiling anyway.
- 05
Read the result
Net profit and margin show product health, break-even ROAS shows the least an ad must return, and the target-margin price shows whether you need to raise your price.
Method
How net profit, break-even price and ROAS are calculated
If your price includes VAT, it is removed first: net sale = price ÷ (1 + VAT rate). Net profit = net sale − marketplace fee − payment processing − fixed fee − shipping − product cost − other costs − ads.
Margin is net profit divided by net sale; markup is net profit divided by product cost. They are easy to mix up: a 25% markup is a 20% margin. A markup calculator and a margin calculator answer different questions, so this tool shows both.
Your ad ceiling is the profit left before ads: spend more than that on ads for one sale and you lose money. Break-even ROAS = sale price ÷ ad ceiling. If the ROAS in your ads manager is below this number, the ad loses money even when it sells.
The break-even price divides your fixed costs per sale (product, shipping, fixed fee, ads) by the share of the price left after percentage fees. The target-margin price adds the margin you want to the same calculation.
Income tax is not included, and the result is for information only; check exact figures with your accountant. If you want to build your ad budget around this ceiling, see services.
FAQ
Your questions, answered.
What is break-even ROAS?
It is the lowest revenue-to-ad-spend ratio at which an ad stops losing money. Divide the sale price by the profit left before ads. If your break-even ROAS is 4, every $1 spent on ads must bring at least $4 in sales.
What is the difference between margin and markup?
Margin divides profit by the sale price; markup divides profit by the cost. For the same product, markup is always higher than margin. A 50% markup is a 33.3% margin.
Why do I enter the marketplace fees myself?
Amazon, eBay, Etsy and TikTok Shop fees depend on category, program and date, and they change. A built-in rate could be wrong for your product. The current rate in your seller dashboard gives the right answer.
Can I use it as a TikTok Shop fees calculator?
Yes. Choose the TikTok Shop tab and enter the commission and any per-order or payment fees shown for your category in Seller Center. The calculator then shows profit, margin and break-even ROAS for your ads.
Is VAT or sales tax included?
If your price includes VAT, enter the rate and it is removed before profit is calculated. US sales tax collected by the marketplace is usually not part of your price, so leave the rate at zero. Income tax is not included.
Are my numbers stored?
No. The calculation runs in your browser; your prices and costs are not sent anywhere or stored.
THE NEXT STEP
Let's set your ad budget around this number
The first 15 minutes are free. Send me the calculator's result on WhatsApp and we'll look at which product's ads actually make money.
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