E-commerce profit calculator and KPI builder
Please enter details into the calculator so we can recommend a budget based on your targets.
Unit economics calculator
| Product RRP | Per unit % | ||
| Enter Average Order Value (AOV) |
£
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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 |
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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 |
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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) |
£
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Enter your average COGS figure of a typical order. | |
| Shipping and receiving (Supplier to warehouse fees, freight, import duties etc) |
£
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Often equates to 5-10% of the COGS figure. | |
| Transaction (payment) fees |
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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 |
£
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Your warehouse/3PL will have this figure. | |
| Product packaging costs |
£
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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 |
£
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This should be the average shipping cost you pay to get it to your customer. | |
| Warehouse & storage fees |
£
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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) |
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Calculate this from your Shopify analytics by doing (total order revenue / total value of refunds) over a 6-month time period. | |
| Total COD |
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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) |
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| Net profit target per unit |
£
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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 |
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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 |
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| Enter daily revenue target |
£
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| Total orders |
New vs returning revenue
| Average returning customer % | ||
| Returning customer revenue |
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| New customer revenue |
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| New customer orders |
Cost of Delivery (Variable costs)
| VAT / sales tax per order |
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| Total COGS (cost of goods) |
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| Shipping and receiving (Supplier to warehouse fees, freight, import duties etc) |
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| Transaction (payment) fees |
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| Pick-and-pack fees |
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| Product packaging costs |
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| Shipping and fulfillment |
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| Warehouse & storage fees |
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| Return rate (% of orders that get returned) |
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| Return Fulfillment Cost (cost to return) |
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| Total return cost per unit |
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| Total variable costs per order |
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| Total variable costs per day |
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Fixed costs & G/A
| Payroll (per month) |
£
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| Software (per month) |
£
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| Agency fees (per month) |
£
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| Rent (per month) |
£
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| General & administrative (per month) |
£
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| Total fixed cost per order |
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| Total fixed costs per day |
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Total operating expenses (Opex)
| Total opex per order |
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| Total opex per day |
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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