ROAS to Profit Calculator
Turn ROAS, AOV, and margin into real profit per order
ROAS to profit calculator FAQs
What does this ROAS to profit calculator actually show?
This tool converts ROAS, AOV, and margin into real profit per order and profit percentage. Instead of stopping at “3x ROAS looks good”, you can see if a campaign still makes money once product costs, ad spend, and extra per-order costs are all included.
What counts as gross margin after product costs?
Use the % of revenue left after cost of goods sold (COGS) or service delivery costs, but before ads and overhead. For ecommerce, that’s usually product + packaging + picking and basic fulfillment. For info products or software, gross margin is often very high (70–90%+), so adjust the default to your real numbers.
How is ad spend per order calculated from ROAS?
ROAS is revenue ÷ ad spend. If a campaign has a 3.0 ROAS and a $60 AOV, then ad spend per order is $60 ÷ 3.0 = $20. This calculator does that conversion for you so you can reason about profit on a “per order” basis instead of at the total campaign level.
What should I put in extra costs per order?
Use this field for variable costs that scale with orders: extra fulfillment fees, warehousing, payment app fees, or per-order customer support. Fixed costs like salaries or subscriptions usually don’t belong here unless you’ve turned them into a per-order estimate for quick planning.
Does this calculator handle multiple products or blended AOV?
Yes, as long as you use an AOV and gross margin that match the traffic slice you’re analyzing. For account-level views, use blended AOV and margin. For a single offer funnel, use that funnel’s specific AOV and margin so the profit per order lines up with how you buy traffic.
Is this financial or tax advice?
No. This is a planning tool for marketers and operators. It simplifies ROAS and margin to a per-order profit view. Work with your finance team or accountant for full P&L analysis, tax treatment, and amortised fixed costs.
How to use this ROAS to profit calculator
This ROAS to profit calculator is designed to help you move from vanity ROAS to actual profit per order. With just four inputs, you can see whether a campaign really earns money once costs and ad spend are accounted for — and how far you are from break-even.
1. Add your average order value (AOV) for the traffic
Start with Average order value for the campaign, ad set, or channel you’re analyzing. Use the revenue per order after discounts and shipping policies the way you report them internally. The closer this AOV is to your real data, the more trustworthy the profit per order will be.
2. Enter the ROAS you see in ads manager
Next, enter the ROAS (Return on ad spend) reported by Google Ads, Meta, TikTok, or your analytics stack. The calculator uses that ROAS and your AOV to infer ad spend per order, which is the missing link between a “3x ROAS” screenshot and an actual profit number.
3. Set your gross margin and extra per-order costs
In Gross margin after product costs, use the percentage of revenue you keep after COGS. Then use Extra costs per order for any other per-order charges like 3PL fees, support, or app costs. Together, these inputs approximate how much of each order is left over before fixed costs.
4. Read profit per order, profit %, and profit per $100 ad spend
After you hit Calculate, the summary shows net profit per order, profit as a percentage of revenue, and profit per $100 of ad spend. You’ll also see derived metrics like ad spend per order and a modeled break-even ROAS, so you know what ROAS you really need to avoid losing money.
Use this calculator whenever you’re comparing channels, debating whether a “borderline” campaign is worth keeping, or trying to set a realistic ROAS target that preserves profit. It’s a fast way to translate ad metrics back into the language your finance and leadership teams care about: dollars of profit, not just return multiples.
How the ROAS to profit math works
The ROAS to profit calculator uses a straightforward per-order model. Let A be your AOV in USD, R your ROAS (revenue ÷ ad spend), m your gross margin after product costs as a decimal (for example 0.6 for 60%), and E any extra cost per order.
Gross profit per order is:
Gross profit = A × m
Ad spend per order implied by ROAS is:
Ad spend per order = A ÷ R
Net profit per order after ads and extra costs is:
Net profit = A × m − (A ÷ R) − E
Profit margin as a percentage of revenue is:
Profit % = Net profit ÷ A × 100
Break-even ROAS is the ROAS where net profit is zero. Setting Net profit = 0 and solving for R gives:
Break-even ROAS = A ÷ (A × m − E) (when A × m > E)
Profit per $100 of ad spend is derived by working out how many orders you get for $100 at your ROAS and multiplying by net profit per order. All values are estimates and rounded to two decimal places, so always cross-check against your real blended metrics before making big budget decisions.
ROAS and marketing profitability references
- Google Ads Help Center – Official documentation on ROAS bidding, conversion value, and reporting.
- Meta Business Help Center – Guidance on tracking ROAS and profitability inside Meta ads.
- Shopify Help: Marketing and attribution reports – How Shopify reports AOV, sales, and marketing performance.
- Investopedia: Profit Margin – Overview of margin concepts you can align with this calculator’s outputs.