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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.

Business type
Currency

01 Ad spend and traffic

$
What you'll pay Meta or Google for the period (month or campaign).Enter a number greater than zero.
How you pay for traffic
$
In the US, Meta CPCs often run $0.50 to $2 and Google Search $1 to $6.Enter a number greater than zero.
%
Share of people who click. 0.8% to 2% is common.Enter a percentage between 0.01 and 100.

02 Conversion and business

%
Out of every 100 visits, how many buy.Enter a percentage between 0.01 and 100.
%
Out of every 100 leads, how many become customers.Enter a percentage between 0.01 and 100.
$
What a customer pays on average per purchase.Enter a number greater than zero.
%
What you keep from each sale after product cost, shipping and fees.Enter a margin between 1% and 100%.
—See results

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.

01How it works

Three steps and done

  1. 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.

  2. 02

    Add your business numbers

    Conversion rate, average order value and margin. In lead mode, also your sales team's close rate.

  3. 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.

02ROAS, ROI and break-even

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.

04FAQ

What people ask us

What's a good ROAS on Meta Ads or Google Ads?
It depends on your margin. Your minimum ROAS is 1 divided by your margin: with a 40% margin you need 2.5 to break even. A good ROAS clears that break-even point comfortably, usually 1.5 to 2 times your break-even ROAS, so it also covers fixed costs.
What's the difference between ROAS and ROI?
ROAS compares revenue to ad spend. ROI compares profit to ad spend, so it subtracts the cost of the product or service. A ROAS of 3 with a 25% margin gives you a negative ROI: you sold three times your ad spend but lost money.
How do I calculate the maximum CPA I can pay?
Multiply your average order value by your margin. If you sell at $150 and keep 40%, you can pay up to $60 per sale in advertising before losing money. In lead mode, also multiply by your close rate to get your maximum cost per lead.
What should I do if the calculator says my campaign is losing money?
Check, in this order: your landing page's conversion rate, the offer, how fast you respond to leads and your average order value. Raising any of them improves profitability faster than trying to lower your cost per click.
Do the results include sales tax and fees?
The calculator uses the numbers you enter. For an accurate result, enter ad spend including any tax exactly as the platform bills it, and use a margin that already accounts for payment fees, shipping and returns.
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