Check your ad profit with our free ROAS calculator

Calculate ROAS, estimated profit, your break-even point
and the advertising budget that supports your profit goal.

ROAS & Profit Calculator

Check estimated profit, your break-even return and the ad budget available for your profit goal.

Currency Use one currency for every monetary input. No currency conversion is performed. Revenue scope Whole store: total revenue and total ad spend. Campaign: attributed revenue and matching campaign spend. Use the same period and scope for all costs.

Sales before refunds * After discounts; exclude sales tax. Include customer-paid shipping if its costs are entered below.

Advertising spend * Ad spend for this same period and scope.

Orders Order count, not unique customers. Optional.

Product costs (COGS) * Costs incurred for these sales, net of recovered inventory. Enter 0 if none.

Shipping & fulfillment Your shipping, packaging and fulfillment costs.

Payment & marketplace fees Do not include these again in overhead.

Refunded sales Monetary amount refunded from the sales above. Enter 0 if revenue already excludes refunds.

Other return costs Return handling or losses not included elsewhere.

Allocated overhead Software, payroll, rent or other relevant allocated costs. Blank means 0.

New customers Optional: new customers only, excluding repeat buyers.

Desired profit margin (%) * Desired profit after entered costs, as a percentage of sales after refunds.

Tracking setup

* Required. Optional cost fields left blank are treated as 0. Enter each cost once only.

Your profitability snapshot

Enter your figures or load the example. Results reflect only the costs you include.

Can you trust the revenue attributed to your ads?

If campaign reports disagree with your sales records, explore whether ClickMagick fits your tracking needs.

Compare its tracking features and integrations with your current setup to see whether it addresses a specific reporting gap.

We may earn a commission if you subscribe through this link, at no extra cost to you. Explore ClickMagick tracking Tracking software does not guarantee perfect attribution or profitable advertising.

Estimated profit after entered costs

Revenue / ad spend Uses sales after refunds.

Break-even revenue / ad spend Includes allocated overhead at current sales.

Revenue / ad spend for your profit goal

Maximum ad budget for your profit goal At current sales; not a spend recommendation.

Where your money goes

Order economics and acquisition cost

Blended ad-only CAC excludes non-ad acquisition expenses. It does not prove advertising acquired each new customer.

What happens if performance changes?

Change sales and ad spend independently. These are assumptions, not forecasts.

Sales change (%) Ad spend change (%)

Sales after refunds and variable costs change by the same percentage. Overhead stays fixed. More ad spend is not assumed to cause more revenue.

Understand the formulas and limits

Revenue ratio = sales after refunds ÷ ad spend. Contribution = sales after refunds − product costs − shipping − fees − other return costs. Profit = contribution − ad spend − allocated overhead.

Break-even ad budget = contribution − overhead. Target ad budget = break-even budget − (sales after refunds × desired margin). Break-even and target ratios divide sales after refunds by the corresponding positive ad budget.

These thresholds apply at the entered sales level. Recalculate if sales, product mix, refunds or costs change. A ratio is unavailable with zero ad spend. A zero or negative target budget leaves no positive advertising budget for that profit goal.

ROAS is an attribution metric, not proof of incremental sales. MER includes organic and repeat-customer revenue. This calculator excludes lifetime value, taxes and omitted costs; it cannot establish whether to scale.

Explore your results with an AI assistant

Build an editable prompt containing your figures and results. Copy it into ChatGPT, Claude or Gemini.

Planning estimates based on your inputs. This calculator does not save your entries or send them to an AI service. Download a summary if you want to keep them.

Legal Disclaimer

This calculator provides estimated results based on simplified advertising models using the data you enter. Actual performance may vary due to auction dynamics, audience targeting, creative quality, platform reporting differences, and business-specific factors.

This tool is provided for informational and educational purposes only and does not constitute financial, marketing, or business advice. By using this calculator, you acknowledge that WebBannerExperts.com is not responsible for decisions, actions, or outcomes resulting from the use of these estimates.

Estimated profit reflects only the costs entered. The calculator does not track or attribute conversions, and its results do not guarantee sales, profitability, or future campaign performance.

How to use this ROAS calculator

Choose your currency and revenue scope.
Select campaign revenue for attributed ROAS, or whole-store revenue
for MER, also called blended ROAS.
Use matching figures.
Enter sales, advertising spend and costs for the same period and scope.
Enter refunds as a monetary amount, not a percentage.
Set your profit goal.
Enter the percentage of sales after refunds you want to retain
after the costs included in the calculator.
Calculate and explore.
Review your estimated profit, break-even point and target advertising
budget. Use the scenario fields to test changes in sales and spend.

Your maximum advertising budget assumes sales and other costs stay
unchanged. It is a planning estimate—not a recommendation to increase
or reduce spending without considering the effect on sales.

Frequently Asked Questions

What is ROAS?

ROAS stands for Return on Ad Spend. It compares revenue
attributed to advertising with the amount spent on that advertising.

ROAS = attributed revenue ÷ advertising spend.

For example, 10,000 in attributed revenue from 2,500 in advertising
spend produces 4× ROAS before any refund adjustment. This calculator
uses sales after the refunds you enter.

What is the difference between ROAS and MER?

ROAS uses revenue attributed to a campaign or advertising channel.
MER—Marketing Efficiency Ratio—uses total business revenue
divided by total advertising spend in this calculator.

Whole-store revenue can include organic sales and repeat purchases.
MER helps you assess overall advertising spend relative to sales,
but does not prove which campaign generated those sales.

Why is my ROAS high but my profit low?

ROAS measures revenue relative to advertising spend. It does not
deduct product costs, shipping, payment fees, returns or overhead.
Those expenses can consume the revenue that initially looks profitable.

For example, if product costs consume 50% of sales and shipping and
fees consume another 15%, you have 35% left before advertising.
Spending that remaining 35% on ads leaves no profit before overhead.
The break-even ROAS in this example is approximately
2.86× before overhead.

What is a good ROAS for my business?

A good ROAS depends on your costs and desired profit margin.
There is no universal 3× or 5× target that guarantees profitability.

With a 35% contribution margin before advertising, approximately
2.86× ROAS covers variable costs and advertising before overhead.
Achieving a 10% margin before overhead requires approximately
4× ROAS, assuming the same cost proportions.

Use your own break-even and profit-goal results. A high ROAS alone
does not establish that spending more will produce profitable sales.

What does break-even ROAS mean?

Break-even ROAS is the revenue-to-ad-spend ratio at which the sales
entered cover the costs included in the calculation.
This calculator includes your allocated overhead when calculating
the break-even ratio at your current sales level.

If your product mix, refunds, sales or costs change, your break-even
point may change too.

Is the result my complete net profit?

The result is estimated profit after the costs you enter.
It is not complete net profit if you leave out expenses such as
payroll, software, taxes or other business costs.

Include relevant costs once only. For a campaign calculation,
allocate costs to that campaign rather than entering unrelated
whole-business expenses.

Should I enter refunds as an amount or a percentage?

Enter the monetary amount refunded in your selected
currency. If 2% of sales worth 10,000 were refunded, enter
200, not 2.

If your revenue figure already excludes those refunds, enter 0
in the refund field to avoid deducting them twice.

What is the difference between cost per order and CAC?

Ad cost per order divides advertising spend by orders.
Blended ad-only customer acquisition cost divides
advertising spend by new customers.

These are different when customers place repeat orders. Ad-only CAC
also excludes other acquisition expenses and does not prove that
advertising acquired every new customer.

How does the AI prompt work?

Select Build my AI prompt to generate an editable
prompt containing your inputs, calculated results and assumptions.
Copy it into ChatGPT, Claude or Gemini to explore the results and
identify useful next checks.

The calculator does not contact an AI service directly. Pasting the
prompt into an AI service shares the included figures with that service.
Review its suggestions against your actual business records.

Why might my calculator result differ from my ad platform?

Differences can come from refunds, attribution windows, reporting
dates, revenue definitions or multiple platforms claiming the same sale.
First check that you are comparing matching figures.

Tracking software can help investigate campaign attribution and
reporting differences. It does not guarantee perfect attribution
or make an unprofitable offer profitable.

Want to find what’s holding back your advertising profit?

Read How to Improve ROAS: Find What’s Holding Back Your Ad Profit.