Selling price minus product cost is not your margin. In Bangladesh, a Facebook or website order also carries ad spend, packaging, the courier charge, a COD cut, and the cost of parcels that come back unsold.
This calculator counts all of that per shipped order. It also shows the return rate where your profit falls to zero, and the price you would need to reach the margin you want.
Why ad cost is charged on every shipped order
You pay for the ad whether the customer accepts the parcel or not. So the calculator keeps ad cost, packaging and other costs in the loss on a returned parcel. This is why margins can look fine on paper and thin in the bank.
To get ad cost per shipped order, divide your ad spend for a month by the orders you shipped that month.
Break-even return rate
This is the return rate at which delivered orders only just pay for returned ones. If your real return rate is close to it, a small rise can turn the product into a loss. Compare it with your own rate before you scale ads on a product.