What can your ads cost before they lose money?
From what a sale is worth and your margin: the return on ad spend you need to break even, and the most you can pay for a sale, an enquiry or a click.
Revenue from one order.
What is left of the revenue after the goods, delivery or the work itself.
Your own conversion rate, from your analytics. Optional, for the cost per click.
Optional.
Optional. Anything you pay to run the ads on top of the ad spend.
Fill in the value and the margin and the figures appear here.
Free, no account, and nothing you type leaves your browser.
How it works
Break-even return on ad spend (ROAS) is one divided by your margin. The thinner the margin, the more revenue each euro of advertising has to bring back before it pays for itself.
The most a sale can cost in advertising is what the sale is worth times your margin: that is the profit there is to spend. For a business that sells through enquiries, multiply that by the share of enquiries you win to get the most an enquiry can cost. Multiply either by your conversion rate to get the most a click can cost.
With a monthly spend and any fees added, it also gives the sales a month the ads have to bring in to cover both. Every figure comes from what you type in; the calculator assumes no conversion rate, cost per click or margin of its own.
What it cannot tell you
- Break-even is no profit and no loss on the first sale. A customer who comes back is worth more than one order, and a business that keeps its customers can choose to pay more than this for the first one.
- Use one basis throughout: if your margin is worked out without VAT, leave VAT out of the order value too.
- It relies on your conversion figures being counted correctly, and consent rules decide how many conversions an ad platform can see: what you can measure without consent.
Your ad accounts, run against these numbers
The Ads add-on runs your Google Ads and Meta accounts, for €400 a month on top of Support at €450 a month. You pay for the ads yourself, straight to Google or Meta.
See Support