Marketing · Free tool
Ad Campaign ROI Calculator
The ad campaign ROI calculator shows whether your adverts make money. Enter the ad spend and the revenue (or conversions and average order value), with clicks, leads, your gross margin and other costs. It calculates return on ad spend (ROAS), ROI on profit, cost per click, cost per lead, customer acquisition cost and break-even ROAS. Compare up to three scenarios and download the results. It runs in your browser.
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Ad Campaign ROI Calculator
Everything is calculated in your browser: your figures are not sent to our server or stored.
How to use the Ad Campaign ROI Calculator
- 1 Enter the ad spend and the revenue the campaign brought in, or the conversions and average order value.
- 2 Add clicks, leads, your gross margin and other costs such as agency fees or design.
- 3 Read ROAS, ROI, cost per lead, customer acquisition cost and break-even ROAS as you type.
- 4 Add a scenario to compare a different budget, price or conversion rate.
- 5 Download a CSV or print the results.
What it does
- ROAS and ROI on profit, side by side
- Break-even ROAS from your gross margin, with and without other costs
- Cost per click, cost per lead and customer acquisition cost
- Works out conversions or revenue when you leave them out
- Up to three scenarios compared
- Ghana cedis by default, other currencies, CSV and print or PDF
Useful for business owners running ads on Facebook, Instagram, TikTok or Google, marketers reporting campaign results and online sellers checking their margins.
Limitations
- Results depend on how revenue is attributed to the ads: ad platforms and online shops count sales differently, and some sales happen offline.
- Gross margin is your own figure: include the direct costs of each sale, such as goods, delivery and payment fees, for a realistic profit.
- It looks at one period only: repeat purchases and customer lifetime value are not included.
The formulas
| Measure | Formula |
|---|---|
| ROAS (return on ad spend) | revenue ÷ ad spend |
| Gross profit | revenue × gross margin |
| Profit after all costs | gross profit − ad spend − other costs |
| ROI | profit ÷ (ad spend + other costs) × 100 |
| Cost per click | ad spend ÷ clicks |
| Cost per lead | ad spend ÷ leads |
| Customer acquisition cost (CAC) | (ad spend + other costs) ÷ conversions |
| Break-even ROAS | 1 ÷ gross margin |
| Break-even ROAS with other costs | (ad spend + other costs) ÷ (ad spend × gross margin) |
ROAS and ROI follow the definitions in Google Ads Help: ROAS is conversion value (revenue) divided by spend, and ROI is profit divided by spend. Break-even ROAS follows from the margin, as Shopify explains: at that ROAS, the gross profit from the sales exactly pays for the ads.
A worked example
You spend GHS 2,000 on ads and GHS 500 on design. The campaign brings GHS 9,000 of sales, and your gross margin is 40%.
- ROAS = 9,000 ÷ 2,000 = 4.5×
- Gross profit = 9,000 × 40% = GHS 3,600
- Profit = 3,600 − 2,000 − 500 = GHS 1,100
- ROI = 1,100 ÷ 2,500 × 100 = 44%
- Break-even ROAS = 1 ÷ 0.4 = 2.5×, or 2,500 ÷ (2,000 × 0.4) = 3.125× once the design cost is included
The campaign is profitable: its ROAS of 4.5× is above both break-even figures.
Why ROAS alone can mislead
A ROAS of 3× sounds good, but with a 25% margin (break-even 4×) every cedi of ad spend loses money. The opposite is true for high-margin services, where a ROAS of 2× can be very profitable. Always read ROAS next to your break-even ROAS, or look at ROI and profit directly.
Getting reliable inputs
- Revenue: count only the sales the ads brought in. Tag every advert’s link with the UTM builder so your analytics separates them, and ask customers who order on WhatsApp or by phone how they found you.
- Gross margin: take the selling price, subtract the direct costs of each sale (goods, packaging, delivery, payment fees), and divide by the price. The e-commerce profit calculator helps.
- Leads and conversions: use the same definitions every time, so scenarios and months compare fairly.
Comparing scenarios
Add a scenario to test what happens if you raise prices, improve the conversion rate or spend more. A new scenario starts as a copy of the previous one, so you only change what differs. To plan a whole budget across channels before you spend, use the marketing budget planner, or ask our digital marketing team to run the campaign with you.
Frequently asked questions
What is the difference between ROAS and ROI?
ROAS (return on ad spend) is revenue divided by ad spend. ROI (return on investment) is profit divided by what you spent. Google Ads defines both this way. ROAS can look healthy while a campaign loses money if your margin is thin, so check ROI too.
What is a good ROAS?
It depends on your margin. Your break-even ROAS is 1 ÷ gross margin: with a 25% margin you need 4×, with a 50% margin 2×. Above break-even (after other costs) the ads make a profit; below it they lose money, however high the number looks.
How do I calculate break-even ROAS?
Divide 1 by your gross margin as a decimal: a 40% margin gives 1 ÷ 0.4 = 2.5×. To cover other costs too, such as agency fees, divide your total cost by ad spend × margin. The calculator shows both.
What is customer acquisition cost (CAC)?
What it costs to win a new customer: the cost of sales and marketing divided by the number of new customers. Here it is (ad spend + other costs) ÷ conversions, so enter new customers as conversions for a true CAC.
Should I include agency fees and design costs?
Yes, as other costs. ROAS uses ad spend only, but profit, ROI and customer acquisition cost include other costs, because they are part of what the campaign really cost you.
Sources
Phoot Technologies
Want ads that pay for themselves?
We plan, run and report on ad campaigns for businesses in Ghana and beyond, with tracking set up so you can see the return on every cedi.
From Phoot Technologies
GrowVirals
Social media services for Instagram, Facebook, TikTok, YouTube and other platforms, ordered and paid for online.
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