Are your ads actually making money?
Calculate ROAS, ROI, cost per sale and the minimum ROAS you need to avoid losing money on Meta Ads or Google Ads. Works for online stores and for businesses that sell through leads.
ROAS
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ROI
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Sensitivity · if your conversion rate changes
The vertical line marks break-even ROAS. Green bars make money; red bars lose it.
Three steps and done
- 01
Enter your spend and costs
Say how much you'll spend, whether you pay per click (CPC) or per 1,000 impressions (CPM), and your CTR. If you don't know them, use the reference values.
- 02
Add your business numbers
Conversion rate, average order value and margin. In lead mode, also your sales team's close rate.
- 03
Read the verdict
You'll see whether the campaign is profitable, how much ROAS you need to break even and what happens if conversion goes up or down.
A high ROAS doesn't always mean making money
ROAS (return on ad spend) divides what you sold by what you paid for ads. A ROAS of 4 means every dollar spent on Meta Ads or Google Ads brought in four dollars in sales. It's the metric ad managers show you, but it doesn't tell you whether you made money, because it ignores the cost of what you sell.
For that you need your break-even ROAS, which is 1 divided by your margin. If you keep 25% of each sale, you need a ROAS of 4 just to recover your ad spend; with a 50% margin, a ROAS of 2 is enough. That's why two businesses with the same ROAS can have opposite results: one makes money and the other loses it. ROI does subtract product cost: it's profit after advertising divided by ad spend.
Businesses that sell through leads (services, real estate, clinics, education) have one extra step: not every prospect buys. Your team's close rate turns leads into customers and sets the maximum cost per lead you can afford. Improving follow-up, by phone or WhatsApp, often lifts profitability faster than lowering the cost of the ad.
The sensitivity table shows the practical side: your site's conversion rate multiplies everything else. Going from a 1.5% to a 2% conversion rate is like cutting a quarter of your ad costs without touching the campaign. If the verdict comes out red, review the landing page, the offer and your response time before raising the budget.
Real ROAS and ROI
Calculates both and explains why a high ROAS can hide losses when your margin is thin.
Break-even ROAS
The minimum you need to avoid losing money, calculated with your real margin.
Max profitable CPA
The most you can pay for each sale or lead without going into the red.
E-commerce or lead mode
Includes the close rate for service businesses that sell by phone, chat or WhatsApp.
Sensitivity table
Shows what happens to your profitability if the conversion rate goes up or down.
Shareable link
Copy a link with your numbers to review them with your team or your agency.
