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Ads Profit Calculator

Calculate ROAS, CPA, profit margins, and break-even metrics for your advertising campaigns. Make data-driven decisions to optimize your Facebook, Google, and TikTok ads.

Calculate Your ROAS

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Calculate Ad Profit

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Break-Even Analysis

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CPA & Conversion Metrics

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Your Results

ROAS

ROI

Return on Investment

Cost Per Acquisition (CPA)
Average Order Value (AOV)
Cost Per Click (if applicable)

Profit Analysis

Net Profit

Profit Margin

After all costs

Gross Profit (before ads)
Gross Margin
Total Costs
ROAS

Break-Even Metrics

Break-Even ROAS

Minimum to break even

Max CPA

To break even

Profit Per Order
Profit Margin
Profit at Target CPA

Recommendation:

Conversion Metrics

Cost Per Acquisition

Per conversion

Conversion Rate

Clicks to conversions

Cost Per Click (CPC)
Click-Through Rate (CTR)
Cost Per 1000 Impressions (CPM)

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Key Advertising Metrics Explained

Understanding these metrics helps you make better decisions about your ad spend

R

ROAS

Return on Ad Spend measures revenue generated per dollar spent on ads.

ROAS = Revenue / Ad Spend
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ROI

Return on Investment shows the percentage return relative to your ad spend.

ROI = ((Revenue - Ad Spend) / Ad Spend) x 100
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CPA

Cost Per Acquisition is the average cost to acquire one customer.

CPA = Ad Spend / Conversions
BE

Break-Even ROAS

The minimum ROAS needed to cover costs without profit or loss.

BE ROAS = 1 / Profit Margin
CT

CTR

Click-Through Rate shows how often people click after seeing your ad.

CTR = (Clicks / Impressions) x 100
M

CPM

Cost Per Mille is the cost per 1,000 ad impressions.

CPM = (Ad Spend / Impressions) x 1000

Industry ROAS Benchmarks

Compare your performance against typical ROAS by industry

Industry Average ROAS Good ROAS Excellent ROAS
E-commerce (General) 2.5x - 3x 4x+ 6x+
Fashion & Apparel 3x - 4x 5x+ 8x+
Beauty & Cosmetics 2.5x - 3.5x 4.5x+ 7x+
Home & Furniture 2x - 3x 4x+ 6x+
SaaS / Software 3x - 5x 6x+ 10x+
Lead Generation 5x - 10x 15x+ 20x+

Note: These are general benchmarks. Your target ROAS should be based on your specific profit margins and business model.

Ads Profit Calculator FAQ

Common questions about advertising metrics and profitability

ROAS (Return on Ad Spend) measures the revenue generated for every dollar spent on advertising. It's calculated as: ROAS = Revenue / Ad Spend. For example, if you spend $1,000 on ads and generate $4,000 in revenue, your ROAS is 4.0x (or 400%). This means you earn $4 for every $1 spent on ads.
A "good" ROAS varies significantly by industry and profit margins. Generally, a ROAS of 4:1 or higher is considered good for most e-commerce businesses. However, the key metric is your break-even ROAS. If your profit margin is 30%, you need at least 3.33x ROAS to break even. Any ROAS above that is profitable. Businesses with higher margins can be profitable at lower ROAS.
Break-even ROAS is the minimum ROAS you need to cover all your costs without making a profit or loss. It's calculated as: Break-even ROAS = 1 / Profit Margin. For example, if your profit margin (after COGS, shipping, etc.) is 25%, your break-even ROAS is 1/0.25 = 4.0x. Any ROAS above 4.0x means you're making profit on your ad spend.
ROAS (Return on Ad Spend) measures gross revenue per ad dollar, while ROI (Return on Investment) measures net profit as a percentage. For example, with $1,000 ad spend and $4,000 revenue: ROAS = 4.0x, but ROI = 300% ((4000-1000)/1000 x 100). ROAS doesn't account for product costs, while true ROI should factor in all costs. Use ROAS for quick performance tracking and ROI for actual profitability analysis.
To improve ROAS: 1) Improve targeting - Use lookalike audiences and detailed targeting to reach high-intent buyers. 2) Optimize creatives - Test different ad formats, images, and copy. 3) Increase AOV - Use upsells, bundles, and cross-sells. 4) Fix tracking - Use server-side tracking to capture all conversions (PixelFly can help with this). 5) Improve landing pages - Faster load times and better UX increase conversion rates.
Platform-reported ROAS often differs from actual ROAS due to: 1) Ad blockers blocking the pixel from firing. 2) iOS 14+ privacy changes limiting tracking. 3) Attribution windows - platforms may count conversions differently. 4) Cross-device tracking gaps. Server-side tracking solutions like PixelFly can help bridge this gap by sending conversion data directly from your server, bypassing many of these limitations.

Get Accurate ROAS with Server-Side Tracking

Ad blockers and iOS privacy changes can cause you to underreport conversions by 20-40%. PixelFly ensures all your conversions are tracked accurately.

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