Unit Economics Calculator
Use this free unit economics calculator to find out — in seconds — whether each order actually makes you money. Enter your product cost, selling price, target ROAS and delivery ratio, and the tool instantly shows your take-home profit per unit, profit margin, break-even ROAS and the maximum CPA you can afford before you start losing money. It’s built for e-commerce sellers, COD (cash-on-delivery) dropshippers and paid-ads media buyers who need to know their real numbers before scaling ad spend.
Unit Economics Calculator
What this calculator tells you
- Take-home profit per unit — your real profit after product cost, ad cost and delivery losses.
- Break-even ROAS — the minimum return on ad spend you need just to avoid a loss.
- Profit margin % — how much of every sale you actually keep.
- Max CPA (cost per acquisition) — the most you can pay per order before the unit turns unprofitable.
- Revenue breakdown — a visual split of each sale into product cost, ad cost and profit.
How the unit economics are calculated
The calculator uses the core formulas every performance marketer relies on:
- Ad Cost = Selling Price ÷ Target ROAS
- Max CPA = (Selling Price × Delivery Ratio) − Total Cost
- Take-home Profit = Max CPA − Ad Cost
- Break-even ROAS = Selling Price ÷ Max CPA
- Profit Margin = (Selling Price − Total Cost − Ad Cost) ÷ Selling Price
The delivery ratio is what makes this a true COD dropshipping calculator: in cash-on-delivery models a share of orders are never delivered, yet you still pay to acquire every order. Lowering the delivery ratio shows exactly how returns and failed deliveries eat into your margin.
Who should use it
Dropshippers running Facebook, TikTok or Google ads; COD sellers across the UAE, Pakistan, Saudi Arabia and wider MENA and South Asia markets; Shopify and WooCommerce store owners; and any media buyer who wants to set a target ROAS with confidence instead of guessing.
Tip
Switch the currency (AED, USD or PKR) in the top-right of the calculator, then move the ROAS and delivery-ratio sliders to stress-test your product. If the banner turns red, the product is losing money at those numbers — raise the price, cut costs, or improve your ROAS or delivery rate until it turns profitable.
Frequently asked questions
What is a unit economics calculator?
A unit economics calculator works out the profit or loss on a single sale after all direct costs — product cost, advertising cost and delivery losses. It tells you whether one order is genuinely profitable before you scale, which is the foundation of a healthy e-commerce or dropshipping business.
How do I calculate break-even ROAS?
Break-even ROAS is your selling price divided by the maximum you can spend to acquire and fulfil an order (your break-even CPA). If your break-even ROAS is 4x, every $1 of ad spend must return at least $4 in revenue for the order to avoid a loss. This calculator computes it automatically as you type.
What is a good ROAS for dropshipping?
It depends entirely on your margin. Products with tight margins need a higher ROAS to stay profitable, while high-margin products can be profitable at a lower ROAS. Rather than relying on a rule of thumb, enter your own numbers above to see the exact break-even ROAS for your product.
Why does delivery ratio matter for COD?
In cash-on-delivery (COD) selling, you pay advertising costs on every order you generate, but only delivered orders bring in revenue. If only 60% of orders are successfully delivered, 40% of your ad spend produces no sale. Factoring in the delivery ratio gives you a realistic take-home profit instead of an inflated one.
Is this calculator free?
Yes. It runs entirely in your browser, requires no sign-up, and none of your numbers are stored or sent anywhere.