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Ecommerce Profit Matrix

EcommerceEcom Agencies

How to use the Profit Matrix

ROAS tells you what the ad account did, not whether you made money. A 3x on a 40% margin product loses; a 2x on an 80% margin product prints. This puts your real costs underneath the ROAS.

  1. 1

    Fill in your cost structure

    Work down the left column. Anything left at zero is left out of the maths.

  2. 2

    Set the range you care about

    Give ad spend and ROAS a min and a max. The grid spreads evenly between them.

  3. 3

    Read across and down

    Columns are monthly ad spend, rows are the ROAS you achieve on it.

  4. 4

    Find your breakeven line

    Green makes money, red loses it, the pale band between them is breakeven.

Watch the walkthrough
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Your Business Inputs

One month of real numbers. Hover any icon for where to find it.

Sales (without ads)
Variable Selling Costs
Cost per Sale
Sales & Marketing
Business Costs (OPEX)

Net Profit by Ad Spend & ROAS

Total business impact, including your $27,003 of fixed overhead. Positive means the whole business made money.

Ad spend$to$
ROASxtox
LossProfit
CFO Summary

Every revenue dollar leaves 62% after COGS and variable costs, so breakeven ROAS falls from 2.90x at $60,000 of spend to 2.00x at $240,000. 44 of 100 scenarios clear your $27,003 of overhead, the strongest being $240,000 at 3.25x for $186,597.

Net profit for each combination of monthly ad spend and ROAS.
Ad spend →
ROAS ↓
$60.0k$80.0k$100k$120k$140k$160k$180k$200k$220k$240k
1x−$70.8k−$79.4k−$88.0k−$96.6k−$105k−$114k−$122k−$131k−$140k−$148k
1.25x−$61.5k−$67.0k−$72.5k−$78.0k−$83.5k−$89.0k−$94.5k−$100k−$106k−$111k
1.5x−$52.2k−$54.6k−$57.0k−$59.4k−$61.8k−$64.2k−$66.6k−$69.0k−$71.4k−$73.8k
1.75x−$42.9k−$42.2k−$41.5k−$40.8k−$40.1k−$39.4k−$38.7k−$38.0k−$37.3k−$36.6k
2x−$33.6k−$29.8k−$26.0k−$22.2k−$18.4k−$14.6k−$10.8k−$7.0k−$3.2k$597
2.25x−$24.3k−$17.4k−$10.5k−$3.6k$3.3k$10.2k$17.1k$24.0k$30.9k$37.8k
2.5x−$15.0k−$5.0k$5.0k$15.0k$25.0k$35.0k$45.0k$55.0k$65.0k$75.0k
2.75x−$5.7k$7.4k$20.5k$33.6k$46.7k$59.8k$72.9k$86.0k$99.1k$112k
3x$3.6k$19.8k$36.0k$52.2k$68.4k$84.6k$101k$117k$133k$149k
3.25x$12.9k$32.2k$51.5k$70.8k$90.1k$109k$129k$148k$167k$187k