Margins, break‑even, ROAS, CAC, ROI, fees, shipping and taxes. All in real time, no buttons.
Gross margin = (Revenue − Cost) / Revenue × 100. Example: $1,000 revenue, $600 cost = 40% margin. Essential for pricing and profitability.
💡 Aim for margins above 30% for sustainable business.Markup is the percentage added to cost to determine selling price. Example: $50 cost + 50% markup = $75 selling price.
💡 Markup and margin are different – know both.Break‑even point = Fixed costs / (Price − Variable cost). Example: $5,000 / ($50−$30) = 250 units.
💡 Lower variable costs or raise price to reduce break‑even.Return on Ad Spend = Revenue / Ad spend. Example: $4,000 / $1,000 = 4x ROAS. A 4:1 ratio is often considered good.
💡 Aim for ROAS above your target profit margin.CAC = Total marketing costs / New customers. Example: $5,000 / 100 = $50 per customer. Lower CAC increases profitability.
💡 Compare CAC with Customer Lifetime Value (LTV).ROI = (Return − Investment) / Investment × 100. Example: ($15,000−$10,000)/$10,000 = 50% ROI.
💡 Use ROI to compare different business opportunities.Selling price = Cost / (1 − Desired margin). Example: $20 cost, 40% margin → $33.33.
💡 Consider market competition when setting price.Calculate fees charged by Amazon, eBay, etc. Example: $100 sale, 15% + $0.30 = $15.30 commission, net $84.70.
💡 Account for all fees when setting your price.Etsy charges 6.5% transaction fee on total (item+shipping) + payment processing (~3%+$0.25) + listing fee. Example: $25 item + $5 shipping → fees ≈ $3.18, net ≈ $26.82.
💡 Use this to price your handmade products profitably.Profit = Sale price − (Base cost + Platform fee). Example: $30 − ($12 + $3) = $15 profit, 50% margin.
💡 Test different suppliers to reduce base cost.Rough estimate: base $5 + $0.5/kg + $0.05/km × multiplier. Adjust multiplier for carrier differences.
💡 Use real carrier quotes for accurate pricing.Estimate taxes based on income and flat tax rate. Example: $50,000 income, 25% rate = $12,500 tax, net $37,500.
💡 Consult a tax professional for exact liability.