RTO Cost Calculator ↗
Estimate return-to-origin costs and compare possible reductions in failed deliveries.
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Free D2C calculator
Unit Economics Calculator
Plug in your real numbers to estimate how much you make or lose on every order after COGS, shipping, ads, sales tax (GST/VAT), gateway fees, and RTO drag.
Free to use · No signup · Calculations run in your browser · Choose any currency
Works for any market. Enter your own costs and rates.
01
Your numbers
All fields update results in real time.
Monthly revenue$479,680.00400 orders
Monthly total cost$455,755.20$1,139.39 / order
Monthly profit / loss$23,924.80Profit
Per-order cost breakdown
Where every unit of your $1,199.20 selling price goes.
- COGS
- $350.00
- Shipping
- $65.00
- Packaging
- $25.00
- Gateway fee
- $23.98
- Sales tax
- $143.90
- CAC
- $500.00
- RTO drag
- $31.50
- Profit
- $59.81
- Total cost
- $1,139.39
Scenario estimate based on your inputs. It does not connect to your store or replace actual settlement and cost reports.
How to use this calculator
Use selling price after the listed discount, product and fulfilment costs, fee and tax assumptions, expected RTO rate, ad spend and order volume from the same period. Compare contribution before and after acquisition cost.
Worked example
If an order brings in ₹1,000 and product, fulfilment, fee, tax and expected RTO costs total ₹650, contribution before ads is ₹350. With ₹200 acquisition cost per order, ₹150 remains to cover overhead and profit.
What the estimate leaves out
Contribution is not net profit. This model uses a simplified tax percentage and ad spend per order, which differs from new-customer CAC. Reconcile assumptions with actual settlement reports; fixed overheads are not included in per-order contribution.
Use inputs from the same reporting period and compare the result with your actual costs before making a decision.
Explore store conversion services ↗Shopify Conversion Audit Checklist ↗ · Read the complete unit economics guide ↗
What does each ecommerce order contribute after costs?
- COGS
- The product cost attached to an order, entered separately from shipping, packaging, fees and advertising.
- Contribution per order
- Discounted selling price minus the modelled variable costs and advertising cost per order. Fixed overhead is not included.
- Acquisition cost assumption
- This model divides ad spend by total orders in the period. It is a blended cost per order, not a measured cost per new customer.
Why it matters
Why Unit Economics Is the #1 Metric for D2C Brands
Scaling without knowing your unit economics is like driving blind. Topline revenue and ROAS hide the real picture; this calculator estimates contribution per order from the inputs you provide.
- 01
Uncover hidden costs
Gateway fees, sales tax, RTO drag, and packaging costs add up quickly. Seeing them together reveals the true cost per order.
- 02
Set the right CAC target
Your maximum affordable CAC is the contribution before ad spend. Spending more means every new customer loses money.
- 03
Know your break-even
The orders needed to cover ad spend help decide whether the current model is ready to scale.
Frequently asked
Straight answers.
What is unit economics and why does it matter for D2C?
Unit economics measures the revenue and variable costs attached to one order. It tells you whether growth creates profit or simply scales a loss.
How is Contribution Margin different from Gross Margin?
Gross margin subtracts COGS from net selling price. Contribution margin also subtracts fulfilment, fees, taxes, expected RTO drag, and CAC.
Why do you factor in RTO costs?
RTO creates expected cost across all orders. Multiplying the failed-order logistics cost by your RTO rate shows that average drag per placed order.
What is a healthy Contribution Margin for D2C brands?
There is no universal target. The useful benchmark is a positive margin that can also cover fixed overheads and leave room for reinvestment.
Check the next part of the picture.
Marketing Budget Calculator ↗
Turn a spend ceiling and target ROAS into a practical revenue and order plan.
Calculation method and examples maintained by MlabsGrowth. See the assumptions above before using an estimate.
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