How it works
The calculator builds one month's statement from a single order. It works out the platform's fees on that order with the same rates as our fee calculators, including any rates you saved or took from a real order. Then it multiplies by your orders for the month.
- Returns and cancellations. A returned order brings in no sales, and the item goes back on your shelf. What you lose is the loss per return: return shipping, packaging, damaged stock, and any platform fees that aren't refunded. Some platforms keep part of their fees when a delivered order is returned, so check a returned order in Seller Center.
- Ads as pesos or ROAS. Choose "₱ per month" if you set a fixed budget. Choose "ROAS" if you think in sales per peso spent. ROAS is sales ÷ ad spend, so a ROAS of 5 means ₱5 of sales for every ₱1 of ads.
- Break-even orders. The number of orders a month that covers your fixed costs, and your ad budget if you set it in pesos. Below it you lose money; above it, every order adds profit.
- Break-even ROAS. The lowest ROAS that still breaks even this month. If your ads run below it, they cost more than they earn. For one product, use the ads break-even (ROAS) calculator.
A worked example
A Shopee Marketplace seller sells a ₱499 item that costs ₱250, with ₱15 of packaging. They ship 300 orders a month, 3% come back, and each return costs them about ₱75 in shipping and packaging. They spend ₱15,000 a month on ads and ₱8,000 on rent, internet and apps.
| Sales (291 delivered orders) | ₱145,209.00 |
| Platform fees (₱94.02 per order on Shopee's default rates) | ₱27,359.82 |
| Product cost | ₱72,750.00 |
| Packaging | ₱4,365.00 |
| Ad spend | ₱15,000.00 |
| Return losses (9 returns × ₱75) | ₱675.00 |
| Fixed costs | ₱8,000.00 |
| Net profit | ₱17,059.18 (11.7% margin) |
|---|---|
| Break-even | 173 orders a month |
The seller keeps about ₱17,000 from ₱145,000 of sales. Their ads return 9.68× and the break-even ROAS is 4.53×, so the ads pay for themselves with room to spare. If returns rose from 3% to 8%, net profit would fall to ₱13,834.48 and break-even would move up to 188 orders.
Costs sellers forget
- Returns and failed deliveries. Even a few percent adds up, especially with cash on delivery. Use your real rate from Seller Center, not a guess. The COD and RTS loss calculator works out what each failed order costs.
- Free gifts and inserts. Thank-you cards, freebies and fragile stickers belong in packaging per order.
- Your own time. If you pay a helper to pack, put it in staff. If you pack yourself, decide what an hour of your time is worth and add it.
- Apps and tools. Chat tools, design apps, printers and label paper are easy to forget because they're small.
- Platform programs. Free shipping, voucher and live-selling programs add a fee on every order. Turn them on in the fee calculator and save your rates, and this page uses them too.
Frequently asked questions
What is a good profit margin for online sellers in the Philippines?
It depends on the product, but many small sellers aim for a net margin of 10% to 20% after fees, ads and fixed costs. Below 5%, a few extra returns or a fee change can wipe out the month.
How do I calculate my break-even point?
Work out what one order leaves after fees, product cost, packaging, returns and ads that scale with sales. Divide your fixed monthly costs, plus any fixed ad budget, by that amount. The calculator does this for you and rounds up to whole orders.
What is ROAS and what is a good ROAS?
ROAS is return on ad spend: sales from ads divided by what you spent. There's no single good number. It has to be above your break-even ROAS, which depends on your margin. A low-margin product may need a ROAS of 8 or more, while a high-margin one can profit at 3.
Should I count returned orders as sales?
No. Returned and cancelled orders bring in no money. Count what you lose instead: return shipping, packaging, stock you can't resell, and any platform fees that aren't refunded. Orders cancelled before shipping usually cost nothing.
Does this include income tax?
No. Net profit here is before income tax. Use the 8% vs graduated tax calculator to estimate your yearly tax. It's an estimate, not tax advice.