Break-Even ROAS Calculator
Minimum ROAS on attributed revenue equal to 1 ÷ gross margin decimal when margin is stable.
Open calculator →Gross Margin Calculator
Revenue minus cost of goods sold, expressed as percent of revenue.
Overview
A simple merchandise margin view before rent, salaries, and other overhead. Agree with finance whether shipping and marketplace fees belong in cost of goods so comparisons stay fair.
When to use this calculator
- When product-level margin needs revenue minus plain COGS first
- Before full-company overhead talk hijacks storefront-level checks
- When marketplace fees genuinely belong beside COGS in your notebook
- When promos materially shrink net revenue in the numerator path
Rule of thumb
COGS wording must match finance: fees in or out changes the headline.
Terms used in this calculator
- Gross margin
- Sales minus COGS as a percentage of revenue—nothing below gross profit counted here.
- AOV
- Average order size: slice revenue divided by order count—with tax/shipping counted the same each month.
Calculator
Gross margin
47.03%
Results are simplified estimates for educational purposes only and should not be treated as financial, accounting, legal, or tax advice. See our disclaimer for details.
Formula
(Revenue − COGS) ÷ revenue × 100.
Example calculation
Using the default example values from the JSON seed for this tool:
- Revenue
- 185000
- Cost of goods sold
- 98000
Result: 47.03% (Gross margin)
How to interpret this result
Revenue minus COGS as a percent after you agreed what sits in COGS.
Shipping, marketplace fees, and discount timing still follow Finance’s usual rules.
Useful product-level check before adding full company overhead.
Common mistakes
- Treating net margin language as gross without relabeling.
- Omitting marketplace fees your books park inside COGS.
- Using list price while promos already hit revenue.
What to do next
Drop into Shopify margin, pricing, or refund tools when real product costs differ from the spreadsheet.
How to improve this result
- Negotiate supplier terms impacting COGS materially.
- Understand marketplace fee treatment inside COGS denominators consistently.
- Forecast promotional calendars when discount-heavy weeks compress margin.
Recommended tools
- Google Ads Help Official documentation for campaign structure and measurement basics.
- ProfitWell Pricing and retention resources for subscription businesses.
- Shopify Commerce platform for building and scaling an online store.
FAQ
- Include shipping?
- Only if everyone agrees it belongs with COGS for this SKU class.
- Marketplace commissions?
- Often treated like COGS for sellers—confirm your books.
- Discount-heavy months?
- Use net revenue after promos in the numerator path.
- Versus Shopify margin tool?
- Widen COGS here to mimic that tool if you want parity.
Related calculators
Simple Net Profit Calculator
Revenue minus a lump of operating expenses you chose to sum for a planning pass.
Open calculator →Product Pricing Calculator (Cost + Margin)
Cost-plus shelf price implied by landed cost plus target gross margin %.
Open calculator →Shopify Profit Margin Calculator
Margin percent after product, shipping, and payment costs measured against selling price.
Open calculator →Affiliate disclosure
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