Formulas
Margin tab: profit before ads = price − cost − (price × platform fee) − shipping; net profit = profit before ads − ad cost per order; net margin = net profit ÷ price; markup = (price − cost) ÷ cost; break-even ROAS = price ÷ profit before ads × 100%. ROI tab: ROI = (returned − invested) ÷ invested; CAGR = (returned ÷ invested)^(1 ÷ years) − 1. Salary tab: everything is converted to an annual figure, then divided by 12 or 52; hourly pay is shown over 52 weeks and over the weeks you actually work after paid time off.
Using the numbers
If your ad campaign's ROAS is below break-even ROAS, every sale loses money — at a break-even of 250%, each $1 of ads must bring at least $2.50 in sales. Margin and markup are easy to confuse when pricing; showing both prevents underpricing. Investments held for different lengths of time cannot be compared by ROI alone; CAGR puts them on a per-year basis. When comparing a salaried job with freelance rates, the hourly rate for hours actually worked is the fairer comparison.
Caveats
Margin results ignore returns, sales tax and payment processing differences unless you include them in fees. ROI ignores taxes, costs and interim cash flows. Salary figures are gross, before income tax and payroll deductions.
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