Interactive Profitability Model
Calculate the Real Economics Behind Every Order
The Canadian e-commerce profit & ROAS calculator works best with averages from your store reports. Every field updates the comparison, profit forecast and recommendations.
1
Store Context
What kind of business are we modelling?
2
Order Economics
What does an average order contain?
Enter product revenue before sales tax. Taxes collected and remitted are excluded from this planning model.
3
Fulfillment & Returns
What does delivery really cost?
Include return postage, processing time, damaged packaging, unrecoverable product cost and payment fees that are not returned.
4
Marketing & Volume
What are you spending to acquire orders?
Promotion Scenario Lab
Will the proposed offer create more profit—or only more orders?
Change the assumptions below to compare the plan against your current month.
Profitability Result
Your Canadian Store Profitability Model
Enter your figures to compare the current month with the promotion scenario.
Actual ROAS vs. Break-Even ROAS
Break-even ROAS is based on contribution before advertising and fixed monthly costs.
Waiting for inputs
Current Month vs. Promotion Scenario
| Metric | Current month | Promotion scenario | Difference |
|---|---|---|---|
| Average order value | $0 | $0 | $0 |
Where Current Revenue Goes
Promotion Thresholds
Personalized Priority List
What to review before scaling
- Complete the inputs to generate recommendations.
Interpretation
The interpretation will explain how the current month and proposed promotion compare.
What Is Contribution Margin?
Contribution margin is the money left from an average order after variable product, payment, shipping, fulfillment and expected return costs. It is the amount available to pay for customer acquisition and fixed business costs before creating profit.
What Is Break-Even ROAS?
Break-even ROAS is the minimum advertising revenue multiple required to cover the variable costs attached to an order. A store with thin contribution margins needs a higher ROAS than a store with stronger margins.
Why Blended Profit Matters
Paid orders should not be judged separately from returning customers, organic sales, email revenue and fixed marketing costs. The full monthly model shows whether acquisition supports a profitable store rather than an attractive advertising dashboard.
Direct Answers for Canadian Sellers
Canadian E-commerce Profitability Questions
What ROAS should a Canadian e-commerce store aim for?
There is no universal target. The right ROAS depends on product cost, fees, shipping, returns, overhead and profit goals. A store should calculate its own break-even ROAS and then build a safety margin above it.
Should GST, HST, PST or QST be included in revenue?
For this planning model, enter merchandise revenue before sales tax. Tax collected for remittance is not treated as operating revenue or profit. Confirm the correct accounting treatment with a qualified Canadian accountant.
How does free shipping affect e-commerce profit?
Free shipping removes shipping revenue while the carrier and fulfillment costs remain. It can still improve profit if the threshold increases average order value or conversion enough to cover the additional subsidy.
What costs should be included when calculating customer acquisition cost?
Paid-media CPA divides advertising spend by attributed paid orders. A fuller acquisition-cost calculation may also allocate agency, creative, software and campaign-management costs. The simulator reports paid-media CPA and includes other marketing costs in monthly net profit.
Why can a promotion increase orders but reduce profit?
A discount lowers revenue on every promoted order, while product, fulfillment, return and shipping costs may remain nearly unchanged. The additional order volume must contribute enough dollars to replace the margin surrendered through the offer.
Can Marketing Mate help improve e-commerce profitability?
Marketing Mate can help connect product feeds, Google Ads, SEO, landing pages, website conversion, email and campaign tracking around the economics of the business. The calculator is a starting point for that conversation.
Turn the Model Into a Growth Plan
Build E-commerce Marketing Around Profit—not Vanity Metrics
Marketing Mate helps Canadian businesses connect Google Ads, Merchant Center, SEO, websites, email and measurement around real margins, customer value and growth capacity.
This calculator provides general planning estimates, not accounting, tax, legal or financial advice. Results depend entirely on the figures entered and do not predict future sales or advertising performance. Confirm taxes, fees, attribution and profitability with the appropriate professional advisers.