What is Break-even ROAS in e-commerce?

Break-even ROAS (Return on Ad Spend) is the minimum ad return required to cover product costs, shipping, and gateway fees without losing money.

How are payment gateway fees calculated?

Gateway fees are typically calculated as a percentage of the gross selling price plus a flat fixed fee per order (e.g., 2% + $0.30).

E-Commerce Profit Margin & Shipping Cost

E-Commerce Profit Margin & Shipping Calculator | SHOKESH MEDIA

1. Pricing & Product Cost

Selling Price (per unit)

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Product Cost / COGS (per unit)

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2. Shipping & Logistics

Shipping & Courier Charges

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3. Marketing & Payment Gateway

Marketing / Cost Per Acquisition (CPA)

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Gateway (%)

Fixed Fee

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Net Profit (Per Unit)

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Net Margin

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Break-Even ROAS

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Selling Price ₹0

COGS (Product) ₹0

Shipping Cost ₹0

Marketing CPA ₹0

Gateway Charges ₹0

Total Expense ₹0

Frequently Asked Questions (FAQ)

What is Break-even ROAS?

Break-even Return on Ad Spend (ROAS) is the multiple your ad revenue must reach to cover all expenses (Product Cost, Gateway Fees, Shipping) without suffering a loss. Formula: Selling Price / (Selling Price - COGS - Shipping - Gateway Fee).

Why should I include payment gateway fees?

Payment processors like Razorpay, Stripe, or PayPal deduct a percentage fee (typically 2%–3%) plus fixed transaction fees per order. Factoring this into unit economics prevents profit leakage.

Disclaimer: This E-Commerce Profit Margin Calculator is provided by SHOKESH MEDIA (a unit of Shokesh Enterprises) for business planning purposes only. Actual net margins may vary depending on platform commissions, customer return rates (RTO), and varying courier partner slabs.