Ecommerce Ad Profit Calculator
Calculate actual campaign profit after product costs, fulfillment, fees, and advertising spend.
Campaign profitability
Advertising efficiency
See whether your advertising is producing profit, not just revenue
Use this calculator when campaign ROAS looks healthy but you want to know how much profit remains after product, fulfillment, shipping, fees, and ad spend.
ROAS compares attributed revenue with ad spend, but it does not subtract the cost of fulfilling the orders generated by the ads.
This calculator adds order economics to campaign performance so you can see pre-ad contribution, actual ad profit, profit margin, and how far revenue is above break-even.
Attributed revenue depends on your measurement and attribution system. Use revenue and order counts from the same reporting source and period whenever possible.
How advertising profit is calculated
The calculator combines campaign data with average order-level variable costs.
Calculate non-ad variable costs
Average product, fulfillment, packaging, shipping, fixed transaction, and other order costs are multiplied by attributed orders. Percentage selling fees are applied to attributed revenue.
Calculate pre-ad contribution
Non-ad variable costs are subtracted from attributed revenue to find the contribution available before advertising.
Subtract ad spend
Advertising spend is subtracted from pre-ad contribution to calculate actual ad profit.
Compare with break-even
The calculator derives the break-even ROAS and attributed revenue required for contribution to fully cover the ad spend.
Example advertising profit calculation
Suppose a campaign produces the following results:
Average order value is $60.00. Total non-ad variable cost is $7,950, leaving $7,050 of pre-ad contribution. After $5,000 of ad spend, ad profit is $2,050 and ad profit margin is about 13.7%. ROAS is 3.0, CPA is $20.00, and profit on ad spend is 41.0%.
What each result means
ROAS is only one layer of campaign performance. Profit metrics show whether that revenue creates economic value after fulfillment.
Ad profit
Attributed revenue minus non-ad variable costs and advertising spend.
Ad profit margin
Ad profit expressed as a percentage of attributed revenue.
ROAS
Attributed revenue divided by ad spend. It measures revenue efficiency, not profit by itself.
Profit on ad spend
Ad profit divided by advertising spend. It shows the profit generated relative to the media spend used.
Break-even attributed revenue
The amount of revenue required for pre-ad contribution to exactly cover the advertising spend under the entered cost structure.
Advertising profit questions
Common questions about moving from ROAS reporting to campaign profitability.
Can a campaign have a good ROAS and still lose money?
Yes. ROAS does not subtract product, fulfillment, shipping, transaction, or other order costs. A campaign can generate several dollars of revenue per ad dollar and still be unprofitable if order contribution is too low.
What is the difference between ad profit and ROAS?
ROAS is a revenue-to-ad-spend ratio. Ad profit is the dollar amount left after both non-ad variable costs and advertising spend are deducted from attributed revenue.
Should agency fees be included in ad spend?
If you want a broader marketing-profitability view, you can include them in advertising spend. If you want to isolate media performance, keep ad spend limited to media and evaluate agency costs separately.
Should returns and refunds be included?
If they materially affect attributed revenue or order economics, use net revenue or an adjusted variable cost assumption that reflects expected return losses.
Why compare profit on ad spend with ROAS?
ROAS shows how much revenue advertising generated. Profit on ad spend shows how much economic profit remained relative to the amount spent on advertising.