Free Paid Ads Calculator

What is a Profitable
Return on Paid Ads?

Estimate it by calculating your Return on Ad Spend (ROAS) below. ROAS measures the revenue your business earns for every dollar spent on ads. Fill out the fields to see what you need to run a profitable campaign.

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Your Inputs

Monthly Ad Spend BudgetRecommended minimum: $1,000/month. Enough budget is needed to train the ad platform algorithm.

Cost Per Click (CPC)Recommended minimum: $2.00. The average CPC depends on industry, typically $2–$8.

Click Through Rate (CTR)Recommended minimum: 2.5%. Industry dependent — eCommerce CTRs can reach 10%.

Product / Service PriceUse the average dollar value, or the price of your most popular offer.

Sales / Leads Conversion RateRecommended minimum: 2.5%. eCommerce typically converts lower than B2B. This is the percentage of ad clickers who become a sale or lead — calculated as (Sales or Leads ÷ Clicks) × 100. Example: 250 clicks × 10% = 25 sales.

Profit MarginRecommended minimum: 25%. Higher margin means a lower ROAS is needed to be profitable.