Allow for returns and acquisition costs
Keep your estimates explicit instead of hiding them in the margin.
Use advertising cost per order for the acquisition expense you want to allocate to one order. If a campaign cost $200 and generated 40 attributable orders, $5 per order is a simple estimate. Attribution and organic orders can make that estimate imperfect.
The returns field is a money allowance per order. For example, an expected average loss of $1 per order can be entered as 1. It is not a return-rate percentage and does not model refunds, recovered inventory or returned shipping individually.
Our sample includes $5 advertising and a $1 returns allowance, producing $20.05 contribution. If advertising rises to $8 with every other field unchanged, contribution becomes $17.05. The difference is exactly the additional $3 cost.
Compare at least a conservative and a lower-cost scenario. These are estimates you supply. The site does not upload order records, fetch platform transactions or claim that a single estimated margin is guaranteed future profit.
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