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Ad Cost per Order Calculator

Calculate the maximum ad spend you can afford per order while still hitting your target net margin—before you scale campaigns.

Inputs

Enter your price, costs, fees, and target margin.

$
%
Net margin after COGS, fees, shipping, and ads.
$
%
Example: marketplace / referral fee.
%
Example: card processing fee.
$
Tip: start with a realistic margin (e.g., 10–30%).

How it works

This calculator estimates the maximum ad spend you can afford per order while still achieving your target net margin. It accounts for fixed costs (COGS + shipping) and percent-based fees (platform + payment). The remaining amount after those costs is the budget you can allocate to ads.

Formula

Fee rate = (Platform % + Payment %) / 100
Fixed costs (no ads) = COGS + Shipping
Target profit = Price × (Target margin % / 100)
Max ad cost = Price − Fixed costs − (Fee rate × Price) − Target profit

Example

If price is $50, target margin is 20%, COGS is $15, shipping is $5, platform fee is 15%, and payment fee is 2.9%: fee rate = 17.9%, fixed costs = $20, target profit = $10. Max ad cost = 50 − 20 − (0.179×50) − 10 = $11.05.

FAQ

Does this include taxes?

No. Taxes vary by location and business setup, so they’re excluded for simplicity.

What does “target net margin” mean?

It’s the profit percentage after all costs including fees, shipping, and ads.

Why is my max ad cost very low?

High fees, high COGS/shipping, or a high target margin will reduce the remaining budget for ads.

Can max ad cost be negative?

If the math yields a negative number, it means you can’t hit the target margin with these inputs.

Is this calculator free?

Yes. No login, no account, and no payment required.

Which platforms does this work for?

Any platform with percent-based fees: Amazon, Shopify, Etsy, Walmart Marketplace, and more.

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