Ad Profitability Calculator
See what one order leaves you after every cost, advertising included.
- Free
- No sign-up
- Values stay in your browser
Ad Profitability Calculator
Inputs
What the customer pays.
When on, VAT is taken out of revenue — tax you collect for the state is not income.
Product and fulfilment (before VAT)
Purchase or production cost, before VAT.
Per order — a marketplace's fixed fee, for example.
Fees
As a share of the selling price.
Your card processor's percentage.
Advertising
Ad spend ÷ orders from ads (CPA).
To see the totals.
Returns
Two-way shipping, handling and unsellable stock, before VAT.
Result
Enter the selling price, product cost and ad cost per order; what each order leaves is calculated as you type.
- Contribution after ads (per order)
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- Contribution margin
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- Contribution before ads
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- Returns included, advertising not.
- Most you can spend to win an order (break-even CAC)
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- Win an order for more than this and every sale loses money.
- Break-even ROAS
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- ROAS at this ad cost
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Per-order breakdown
- Net revenue (excl. VAT)
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- VAT
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- Marketplace commission
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- Payment fees
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- Product, shipping, packaging and other
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- Expected cost of returns
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Monthly totals
- Revenue
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- Ad spend
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- Total contribution
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How do you calculate ad profitability?
Take product, shipping, fees and the ad cost per order out of revenue before VAT. What is left is what each order really earns you.
Net revenue Selling price ÷ (1 + VAT rate)
Contribution before ads Net revenue − fees − product, shipping, packaging and other costs
Frequently asked questions
What is the difference between contribution and net profit?
Contribution is what a sale leaves after the variable costs it causes. Net profit also takes away fixed costs such as rent, staff and software, and taxes. This calculator shows contribution, because the advertising decision depends on whether each order adds to those fixed costs.
What is break-even CAC?
The most you can spend to acquire an order or customer. It equals the contribution before ads: spend more than the order leaves and every sale loses money.
How do I find my break-even ROAS?
Divide the selling price by the contribution before ads. If the price is four times the contribution, the ads need a ROAS of at least 4 to pay for themselves. The ROAS Calculator does the same from a margin percentage.
My prices include VAT — what should I enter?
Enter the price the customer pays and leave "Selling price includes VAT" on; the calculator takes the VAT out of revenue. Enter product, shipping and packaging costs before VAT. If you sell without VAT, switch it off.
How should I account for returns?
Divide recent returned orders by total orders to get the rate, then enter what one returned order costs you in total: two-way shipping, packaging, handling and stock you cannot resell. The calculator assumes returned orders earn nothing while their ad cost is still paid.
From profit per order to the picture per campaign.
Connect your ad accounts and spend, conversions and ROAS read campaign by campaign on one dashboard. With your break-even line in hand, you see at once which campaigns fall short.