SELLER TOOLS · PRACTICAL UNIT ECONOMICS
Ecommerce Order Profit & Returns Calculator
Check what remains after ads, refunds, COD non-collection and shipping.
A high gross margin can vanish after advertising, non-delivery or refunds. Model both successful and failed orders rather than assuming 100% delivery.
Your order economics
Use your own numbers; sample figures are illustrative. All amounts use the same currency.
Risk-adjusted estimate
Planning model only, not accounting or tax advice. Enter lost payment fees on failed orders separately; COD refusals often have no processor fee. No real transactions or supplier prices are fetched.
Frequently asked questions
Is expected contribution equal to net business profit?
No. This calculation omits fixed overhead, taxes, accounting, wages, licensing and chargebacks unless you model those costs yourself.
How are returns modeled?
Failed/returned orders have zero received revenue. Stock from a return is assumed recoverable unless you enter an explicit stock loss. Shipping, packing and acquisition spend are lost.
What happens with cash on delivery?
Refused parcels can cost outbound and return shipping without bringing in product revenue. Enter your own actual agreement and carrier costs.
What does break-even advertising mean?
It is the maximum modelled spend per attempted order before expected variable contribution drops to zero. It is not a recommendation to spend that much.
I receive only a commission from a supplier. Can I use this?
This model assumes you are economically responsible for customer sales and costs. Commission-only agents should enter only real inflows/outflows and validate their contractual and tax treatment separately.
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