Free tool
Profit Margin Calculator
See all four margins — product, gross, contribution and net — plus your break-even ROAS and max allowable CPA, so you know if your store is actually profitable before you spend another cent on ads.
Revenue & Product Cost
Customer pays
€
Supplier + unit packaging
€
Cost of Delivery
To customer
€
Boxes, returns, fulfillment
€
Stripe / PayPal
%
Per transaction
€
Marketing & Operations
Blended, per order
€
Salaries, software, rent
% of revenue
Net Profit (per order)
€31.80
31.80% Net Margin
Contribution profit €46.80 per order — what your marketing actually earns before overhead.
The Four Margins
- Revenue (per order)€100.00
- − Product cost (COGS)−€25.00
- Product Margin healthy 75.0%
- − Delivery & payment−€8.20
- Gross Margin healthy 66.8%
- − Ad spend (CPA)−€20.00
- Contribution Margin strong 46.8%
- − Operating costs (OpEx)−€15.00
- Net Margin strong 31.8%
Healthy benchmarks: product 60%+, gross 50%+, contribution 20–35% while growing (40%+ to scale profitably), net 10–15%. Below 20% contribution is a red flag.
Marketing Targets
Break-Even ROAS (blended)
1.50×
Must get back €1.50 for every €1 spent on ads — measured on all spend vs all revenue, not platform-reported ROAS
Max Allowable CPA (Break-Even)
€66.80
Your gross profit per order. Above this, every sale loses money.
Numbers don't lie. Your ad account might.
A 4× platform ROAS can still lose money once product cost, delivery and overhead take their cut. If your blended ROAS is below the break-even number above, you're burning cash. We help DTC brands turn Meta ads, CRO, and email into contribution profit — accountable to margin, not impressions.
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