📣 To steer your Facebook, TikTok and Google campaigns
📣 Ad calculator: ROAS, break-even, budget
Work out the minimum ROAS to avoid losing money, your maximum cost per purchase, the ad budget needed to reach a goal, and the real cost per delivered order with cash on delivery.
The formulas
- Margin per sale = selling price − cost per sale excluding ads. It is also the maximum cost per purchase: above it, each sale loses money.
- ROAS = revenue ÷ ad spend. Minimum ROAS = selling price ÷ margin per sale.
- Profit after ads = revenue × margin rate − ad spend.
- Cost per click = CPM ÷ (1,000 × click-through rate). Cost per sale = cost per click ÷ conversion rate.
- Clicks needed = sales ÷ conversion rate. Budget = clicks × cost per click. For a profit goal: sales = target profit ÷ (margin per sale − cost per sale).
- Cost per delivered order = cost per received order ÷ (confirmation rate × delivery rate). Maximum cost per received order = margin per sale × confirmation rate × delivery rate.
The results are estimates based on your figures: costs and conversion rates change from one campaign to another. Everything is calculated in your browser, nothing is sent.
Frequently asked questions
What is ROAS?
ROAS (return on ad spend) is the revenue obtained for each unit of currency spent on advertising. A ROAS of 3 means that 100 spent brought in 300 of sales. It is not a profit: you still have to pay for the product, the delivery and the other costs.
What minimum ROAS should I aim for?
There is no universal good ROAS: it depends on your margin. The minimum ROAS equals the selling price divided by the margin per sale. With a margin of 40% of the price, you need a ROAS of at least 2.5 to avoid losing money.
Why is my ROAS good but I earn nothing with cash on delivery?
Platforms often count orders placed, not orders paid. If some orders are not confirmed or are refused on delivery, the real revenue is lower than the one displayed. Use the Cash on delivery tab to correct it.
How do I estimate my conversion rate?
Divide the number of sales by the number of clicks over a past period, with the same offer and the same page. Without history, run a small test with a limited budget before planning a large one.
Should I think in CPC or CPM?
Use what your platform shows you. On Facebook, Instagram or TikTok you often pay per impression: enter the CPM and the click-through rate. On Google Ads you often pay per click: enter the CPC.
Profitable campaigns, not just clicks
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