Export

Unit economics calculator

  Product RRP Per unit %
Enter Average Order Value (AOV)
£
You can pull this figure from Shopify. If pulling from Shopify, make sure that you filter the AOV report by Sales channel = online store. This ensures that orders processed for exchanges carrying a £0 value don't skew this figure.
Enter average VAT/sales tax per order
This should be simple but could be more complex if you sell to multiple territories. e.g. if you're based in the U.K. and sell 80% of products to the U.K. market at 20% VAT and 20% to the US market at 5% sales tax, your average % here would be (80*0.2) + (20*0.05) = 17%.
Net revenue

Cost of Delivery (COD)

  Per unit cost Per unit % If you're based in the U.K. and have included VAT above, make sure to exclude VAT from the COD figures as the majority of these should all be reclaimed.
Cost of goods sold (COGS)
£
Enter your average COGS figure of a typical order.
Shipping and receiving (Supplier to warehouse fees, freight, import duties etc)
£
Often equates to 5-10% of the COGS figure.
Transaction (payment) fees
The industry average is between 2-2.5%. If you use buy now pay later providers or PayPal, this may be a little more.
Pick-and-pack fees
£
Your warehouse/3PL will have this figure.
Product packaging costs
£
This is the total cost of any packaging and inserts that goes into an average order. For example, this may include a mailer bag, ziplock bag, and a "thank you for your order" flyer if you're a fashion brand.
Shipping and fulfillment
£
This should be the average shipping cost you pay to get it to your customer.
Warehouse & storage fees
£
This should be calculated by (average monthly storage fees + warehouse monthly subscription fees) / total orders per month. This will be a very small number.
Return Rate (% of orders that get returned)
Calculate this from your Shopify analytics by doing (total order revenue / total value of refunds) over a 6-month time period.
Total COD
The total cost of delivery. I.e. what it costs for you to get the product all the way from manufacturing to the customer.

Profits

  Fuel profit As %
Contribution margin (fuel profit)
Net profit target per unit
£
This is how much net profit you normally make or would like to make on every unit sold. This is usually around 10% for mature ecommerce brands, and less than 10% for growing brands.

Targets

  As £/$ As %
Blended breakeven ROAS (MER)
Blended CPA target
This is the overall cost per acquisition target, combining marketing spend from all platforms.
Blended ROAS target (MER) The target total revenue / total ad spend metric we need to hit to ensure profitability.

Unit economics calculator

  Money in Per unit %
Enter average order value
Enter daily revenue target
£
Total orders

New vs returning revenue

Average returning customer %
Returning customer revenue
New customer revenue
New customer orders

Cost of Delivery (Variable costs)

VAT / sales tax per order
Total COGS (cost of goods)
Shipping and receiving (Supplier to warehouse fees, freight, import duties etc)
Transaction (payment) fees
Pick-and-pack fees
Product packaging costs
Shipping and fulfillment
Warehouse & storage fees
Return rate (% of orders that get returned)
Return Fulfillment Cost (cost to return)
Total return cost per unit
Total variable costs per order
Total variable costs per day

Fixed costs & G/A

Payroll (per month)
£
Software (per month)
£
Agency fees (per month)
£
Rent (per month)
£
General & administrative (per month)
£
Total fixed cost per order
Total fixed costs per day

Total operating expenses (Opex)

Total opex per order
Total opex per day

Daily outputs - target BE and net profit KPIs

Breakeven model
Daily fuel profit (ad spend remaining)
Breakeven ROAS
Breakeven MER
Breakeven NC-ROAS
Breakeven NC-CAC
Target net profit model
Target net profit %
Fuel profit (ad spend remaining)
Target ROAS
Target MER
Target NC-ROAS
Target NC-CAC