Ad Calculators: are your ads making money?
Check whether your ROAS is good enough, what a customer really costs you, and how much budget you need to hit your target. The results are more than numbers; they tell you whether you are in profit or losing money.
What each calculator does
- ROAS and profitability: shows how much revenue each unit of ad spend brings and whether you are profitable at your gross margin.
- CPA and acquisition cost: works out what a sale or customer costs, the most you can pay and still profit, and your LTV:CAC ratio.
- CPM · CPC · CTR: turns the raw numbers from your ad dashboard into cost per thousand impressions, cost per click and click-through rate.
- Budget planner: works backwards from a revenue target to the orders, clicks and budget you need.
Why break-even ROAS is the number that matters
“Our ROAS is 4” means little on its own. With a 25% gross margin your break-even ROAS is 4, so a ROAS of 4 only covers costs. With a 50% margin break-even is 2, and 4 is excellent. That is why the calculator always asks for your margin and compares the result with break-even.
Reading the results
Platform-reported ROAS is often optimistic, because several channels can claim the same sale. Before deciding, compare platform data with the real revenue in your analytics and accounts. You can also use the calculators to set targets for a new campaign: find the budget you need with the planner, then check with the ROAS calculator whether that budget leaves a profit.
FAQ
Frequently asked questions
Short answers about ad metrics.
What is a good ROAS?
There is no single right number; it depends on your gross margin. Break-even ROAS is 1 ÷ margin. At a 40% margin break-even is 2.5, and any ROAS above that is profit.
What is the difference between ROAS and ROI?
ROAS divides revenue by spend and ignores costs. ROI divides profit by spend. Only ROI, or profit after ads, tells you whether the ads truly make money.
Are CPA and CAC the same?
They are close. CPA is the cost of one conversion, which can be a sale, a lead or a sign-up. CAC is the full cost of winning a new customer and usually includes all marketing costs.
Why should LTV:CAC be 3?
It is a common rule of thumb: earning at least three times what you pay to acquire a customer covers operating costs and leaves room to grow. Below 1 means you lose money on every new customer.
Is my data stored?
No. All calculations run in your browser; the figures you enter are not sent to our server.