E-commerce Pricing & ROAS Calculator
Find break-even and recommended prices plus the ROAS you need after product cost, shipping, fees, returns, and ads.
Key concepts
ROAS
Return on ad spend — revenue generated per dollar of advertising.
Contribution margin
Revenue left after variable costs (product, shipping, fees), before or after ads depending on framing.
What this tool does
Price for the funnel, not just COGS
A 3× markup on product cost can still lose money after payment fees, returns, and paid acquisition. This calculator solves for a price that protects your margin and shows the ROAS your ads must hit.
How to use this tool
Enter unit costs, fees, return rate, ad spend, and target margin. Scenario B compares a cheaper SKU or leaner ad spend.
Formulas used
Price ≈ Fixed per-order costs / (1 − returns − fees − margin) Required ROAS ≈ Price / Max ad spend that still leaves target profit
Fixed per-order costs include COGS, shipping, other fees, and planned ad spend when solving price. ROAS uses contribution after variable costs.
Worked example
COGS $25, shipping $5, 2.9% fees, $1 other fees, $12 ads, 5% returns, 30% target margin. The tool recommends a price, shows break-even, and estimates the ROAS needed so advertising does not erase profit.
Decision checklist
0/5 checked
Tick items as you validate your decision.
Common mistakes
- Ignoring returns and chargebacks.
- Treating ROAS targets as optional after pricing.
- Forgetting marketplace commissions in other fees.
Methodology on this page
Unit-economics model for education. It does not allocate fixed overhead like salaries or software unless you add them into other fees.
Read the full FinTools4U methodology →Frequently asked questions
Is higher ROAS always better?
Higher ROAS means more revenue per ad dollar, but growth may require accepting a lower ROAS within a profitable range.
Where do I put Shopify/Amazon fees?
Add percentage fees into payment fee or fixed marketplace fees into other fees per order.
Can I model two products?
Yes — use Scenario B for an alternate cost or margin target.
Does this include VAT/sales tax?
Not explicitly. If tax is additive at checkout, keep prices ex-tax consistently.
Sources & further reading
- SBA — Pricing strategies — Small business pricing primer.