Free profitability tool

TikTok Shop profit margin calculator

Enter an actual ROAS to see ad spend per order, profit per order and profit margin after the variable costs you control.

✓ Actual ROAS✓ Profit per order✓ No upload

Turn your observed ROAS into profit

The primary outputs are ad spend per order, profit per order and margin at the actual ROAS entered.

Use an observed revenue ÷ ad spend value above 0.
Used to show the secondary target-margin ROAS.

All arithmetic runs in your browser. This is a variable-cost model, so fixed overhead is excluded.

01 · Revenue is not profit

Read actual ROAS in commercial context

An observed ROAS does not contain the product economics. This page translates it into the profit or loss one representative order leaves after variable costs.

Review a week of performance

Enter the actual ROAS for the period, then check the currency profit per representative order rather than revenue alone.

Compare creator commission terms

Model the commission included in the content mix so it is not hidden behind a positive revenue metric.

Test return sensitivity

Returns reduce contribution and add return cost. Use your own return assumption rather than a generic rate.

03 · FAQ

Profit margin questions

The method and limits are visible in the form above.

How is profit per order calculated at actual ROAS?

Advertising spend per order equals gross selling price divided by actual ROAS. Profit equals the calculator's net contribution after returns minus that ad spend.

Why can a positive ROAS still show a loss?

ROAS measures revenue divided by ad spend, not profit. Product cost, fees, fulfilment, creator commission and returns can leave too little revenue for advertising.

What is profit margin here?

It is profit per order after advertising divided by gross selling price, expressed as a percentage.

What ROAS should I enter?

Enter an actual observed ROAS for the period and scope you are reviewing. The calculator does not recommend a ROAS range.

From profit to signals

Review performance before it drifts.

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