Cash-on-delivery profit calculator

How the calculator works

The calculator models a batch of 100 orders received, so every input works as a rate or a per-order cost and the outputs scale to any volume.

You enter your selling price, product cost, shipping, ad cost, and two rates: confirmation and delivery. The calculator applies them to the 100 orders and returns revenue, costs, profit, and ROAS.

What each input means

• Selling price: what the customer pays for one order.
• Product cost: what one unit costs you, landed and ready to ship.
• Shipping per parcel: what you pay the carrier to ship one parcel, whether it is delivered or returned.
• Ad cost per order: your total ad spend divided by the number of orders it produced, before confirmation or delivery.
• Confirmation rate: the share of the 100 orders that are confirmed by phone or message before shipping.
• Delivery rate: the share of confirmed orders that are actually delivered and paid for, rather than returned.

The math

The calculator works through the 100 orders in order: how many get confirmed, how many of those get delivered, and what that means for revenue, shipping, ad spend, and profit.

Reading your break-even ROAS

Break-even ROAS is the return on ad spend at which revenue exactly covers product cost and shipping, with nothing left for ad spend or profit. If your actual ROAS is below it, every order is losing money once shipping and product cost are paid, even though revenue is coming in.

Your actual ROAS needs to sit above the break-even line, not just above 1, because shipping on returned parcels and product cost on delivered orders both come out of revenue before ad spend is covered.

Three levers that move profit the most

The formulas above point to the same three levers, because each one changes more than one line at once.

• Confirmation rate: a lower confirmation rate does not just lose orders, it also means more of the 100 orders never became revenue while still counting toward ad spend, since ad spend is fixed at 100 × ad cost per order regardless of what gets confirmed.
• Delivery rate: every confirmed order that is not delivered still pays shipping twice, in the Shipping formula's (confirmed orders + returned parcels) term, while contributing nothing to revenue. Raising delivery rate removes cost and adds revenue at the same time.
• Price and bundle value: selling price sits alone in the Revenue formula and does not change shipping or ad spend, so a higher price or a bundle that raises the average order value moves straight to net profit and to break-even ROAS.