Business
Ad Spend Profit Calculator
Combine ad spend, attributed sales, product margin and fees to see if the campaign makes money.
Are the ads profitable?
ROAS alone can look healthy while profit is negative if margin is thin. This calculator combines ad spend, attributed revenue and contribution margin so you can see cash left after ads — not just a marketing ratio. Enter the margin after product cost and selling fees, including payment and marketplace cuts you actually pay. Last-click platforms often overstate credit on branded search; treat the output as a planning model and reconcile with finance revenue definitions. New customer campaigns and retention campaigns rarely share the same true incrementality, so run them as separate scenarios when you can. Set efficiency floors with break-even ROAS and compare acquisition efficiency with LTV to CAC when repeat purchase matters. Pair unit economics with product profit before you scale a thin SKU. Estimates only — not accounting or media-buying advice. Finance and growth should agree whether revenue is gross merchandise or net of discounts before the weekly review. Creative tests that ‘win’ on ROAS still need this profit lens before budget shifts.
Worked example
You spend £2,000 on ads, attribute £7,200 of revenue, and keep 28% contribution after product and fees. Contribution from those sales is 0.28 × £7,200 = £2,016. Profit after ads is £16 — essentially break-even despite a 3.6 ROAS. At 22% margin the same spend and revenue would lose about £416, which is why margin inputs matter more than vanity ROAS.
Limits and assumptions
Ignores view-through quirks, stockouts, creative fatigue and delayed subscription revenue. Refunds and chargebacks should be netted from revenue or margin. Organic halo and brand lift are outside the cash model. Not a substitute for incrementality tests.
Frequently asked questions
Why is my ROAS high but profit low?
Thin margins need higher ROAS to break even. Recheck fees and discounts in the margin field.
Should I include organic sales in revenue?
Only if you want a blended MER-style view. For paid efficiency, use ad-attributed revenue consistently.
How often should I recalculate?
Weekly while testing creatives; monthly for steady accounts. Recalculate after fee or price changes.
Where do promotional discounts go?
Use the discounted selling price in revenue and the true post-discount margin, or the profit figure will flatter the campaign.
Can I fold agency fees into ad spend?
Yes — include management fees if you want profit after the full cost of buying media.