Is this calculator specific to Shopify?

The math is ecommerce-specific and works especially well for Shopify stores because it includes the costs Shopify merchants usually need to model: COGS, payment fees, shipping, returns, ad spend, inventory, conversion rate, or repeat purchases depending on the tool.

Should I use gross margin or contribution margin?

Use contribution margin when you are making advertising, discount, or growth decisions. Gross margin is useful, but contribution margin is stricter because it accounts for variable costs like payment fees, fulfillment, shipping, returns, and app costs.

Why does the tool use default values?

Defaults make the calculator useful immediately and show the shape of the result before you enter your own numbers. Replace them with your store's actual numbers before making a final decision.

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Meta Ads Profit Calculator

Calculate Facebook and Instagram ad profitability using revenue, spend, orders, and contribution margin.

Meta ads profit calculator

Calculate whether Facebook and Instagram ads are profitable after COGS, shipping, fees, returns, and contribution margin.

Attributed revenue

Ad spend

Orders

Contribution margin before ads

Meta profit after ads

$1,040

Reported ROAS

Break-even ROAS

2.38x

CAC

$26.67

Max CAC

$33.60

Contribution before ads

$5,040

Profit margin after ads

8.7%

If reported ROAS is below 2.38x, this channel is not covering contribution costs before overhead. Use max CAC as the spend ceiling for the current product mix.

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About this tool

What this free tool calculates

Use this when Ads Manager shows a good ROAS but cash does not match. It converts ROAS into profit, CAC, max CAC, and break-even ROAS.

How to use the result

Profit after ads equals attributed revenue times contribution margin minus ad spend. Break-even ROAS equals 1 divided by contribution margin.

Use the max CAC and break-even ROAS to decide whether to scale, pause, or fix product economics before spending more.

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Why the calculator stays input-driven

This free ecommerce tool does not guess demand, scrape competitors, or invent benchmarks. Change the numbers to match your store, then use the result to decide whether a product, campaign, discount, or inventory move is worth doing.

Frequently Asked Questions

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