Ad Budget Calculator

Instant

Calculate ROAS and true ad profitability, or work backwards from a revenue target to plan your ad budget.

Campaign details

$
$
30%

What % of revenue is your product cost? Enter 0 for pure software/services.

Return on Ad Spend

3.60x

Profitable

Break-even at 1.43x

Net profit

$7,600

Marketing efficiency ratio

152.0%

Break-even ROAS

1.43x

Ad spend ÷ revenue

1:3.6

Revenue allocation

Ad spend (28%) COGS (30%) Net profit (42%)

How it works

The Ad Budget Calculator is a free ROAS calculator and reverse ROAS planner for performance marketers, media buyers, and DTC brand owners. It has two modes: Calculate ROAS (measure actual campaign profitability) and Plan Budget (work backwards from a revenue target to determine the ad spend you need).

In Calculate ROAS mode: enter your ad spend, revenue from ads, and COGS percentage. The tool instantly shows your ROAS, net profit, marketing efficiency ratio, and break-even ROAS — the minimum return needed to cover your product costs. In Plan Budget mode (reverse ROAS calculator): enter your monthly revenue target and the ROAS you're aiming for. The tool calculates the required monthly and daily ad budget. Add your average CPC to see the clicks and estimated impressions needed to hit the target.

Use this tool before pitching a media budget to leadership, when briefing an agency on performance targets, or when deciding whether to scale a campaign. The break-even ROAS metric is especially useful for products with high COGS — a 3x ROAS looks great until you realize you're breaking even. Use the COGS slider to find the ROAS floor your campaigns must clear before spending more.

Frequently Asked Questions

A healthy Facebook ROAS depends on your margins. For a product with 40% gross margin, you need at least 2.5x ROAS to cover ad spend before any other costs — so 3–5x is a realistic profitable target. DTC brands commonly aim for 3–4x. Use the COGS slider to find your personal break-even ROAS rather than relying on industry benchmarks.