Ad profit calculator
Enter your product's price and cost, and find the lowest ad return that keeps you from losing, before you spend on ads.
Change the numbers and the result updates at once.
What does the result mean?
This is the return you break even at: any ad below it loses money. What is above it is your profit before the store's other costs.
If the number is high (above 3x)
Your margin is thin and any rise in ad costs eats it. Raise the average order with bundles, or revisit the cost and the price.
If the number is low (below 2x)
You have room to scale ads, provided you count fixed costs such as salaries and subscriptions before raising the budget.
How is it calculated?
Lowest ROAS = price ÷ (price − cost − shipping). Highest cost per order = price − cost − shipping.
A product priced 650 that costs 250, with no shipping:
650 ÷ (650 − 250) = 1.63x
The most you can pay for ads per order: 400.
Questions
What is the difference between ROAS and profit?
ROAS measures sales against ad spend only. It can be high while the store loses money, because it ignores product and shipping costs. That is why we start from the break-even number.
Should I include payment and packaging fees in the cost?
Yes. Every cost you pay on a single order belongs in the product cost: packaging, payment gateway fees and commissions. The more precise the cost, the truer the break-even.
Why does Ads Manager show a higher ROAS than my store?
Ad platforms credit themselves with sales that may have come from other channels, over an attribution window they choose. Always compare with the actual sales in your store.
Related tools
POAS calculator
The real profit from your ads, not the sales.
Profit margin and pricing calculator
The price that gives the margin you want after shipping and payment fees.
Ad budget planner
The budget and the orders your sales target needs.
The next step.
The result is a starting point. In the Growth Audit we compare it with your store's and campaigns' real numbers.