Ad Profit Calculator
Work out profit after ad spend from orders, order value and gross margin, so a good ROAS does not hide a loss.
Use Ad Profit Calculator
This shows profit after ads, not your business net profit, and is only as accurate as the orders you enter. Free, no sign-up. Runs in your browser; nothing you enter is uploaded.
How to use it
See what your ads earned after their cost. Use numbers from the same period.
- Pick your currency, then enter the orders from your ads and their average order value.
- Enter your gross margin, without ad costs.
- Enter ad spend and calculate.
Formula
Gross profit = orders × average order value × gross margin ÷ 100
Ad profit = gross profit − ad spend
Profit per order = ad profit ÷ orders
Example
Home-décor store, India
A month of ads that made a profit.
- Number of orders
- 148
- Average order value
- ₹1,180
- Gross margin
- 44%
- Ad spend
- ₹58,000
Questions
What should I include in gross margin?
Subtract product, packing, shipping, payment fees and returns from revenue, and enter what is left as a percent. Leave ads out, or they are counted twice.
Why can ROAS above 1x still mean a loss?
ROAS compares revenue with ad spend, not profit. In the US example, $5,162 of revenue leaves $1,961.56 at a 38% margin. After $2,150 of ads, that is a $188.44 loss.
What does negative profit per order mean?
Each order earns less than its share of the ad cost. Raise order value, cut costs or lower what you pay per order.
What happens with zero orders?
Ad profit equals minus your ad spend. Profit per order shows a dash, as there are no orders to divide by.
Does this include repeat purchases or fixed costs?
No. It counts only the orders and costs you enter. For repeat purchases, use the LTV calculator.
Can I mix currencies or time periods?
No. Use one currency and one period for every input. The currency picker changes labels only; it does not convert amounts.
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