Paid Advertising Profitability Calculator
Are your Google, Meta and LinkedIn ads actually making money? See your real profit after product costs and fees, your break-even numbers, and the budget where profit peaks.
Your Ad Settings
Pick your industry for typical starting numbers, then replace them with your real figures from Google Ads, Meta or LinkedIn and your accounts.
Changes the symbol only — no exchange conversion.
Your ads
Typical starting point: A$6.50
Typical starting point: 5%
Typical starting point: 25%
Your economics
Typical starting point: 60%
Hidden costs (optional)
Account data (optional)
Results Summary
Profitable
$12,308/month
net profit after product costs, ad spend and fees · $147,692/year
Likely range: $7,587 to $18,077/month
Your Full Profitability Breakdown
Where your ad money goes, the numbers you must hit, and how to make more.
Monthly profit & loss
769 clicks → 38.5 leads → 9.6 customers · ROI 246.15% · profit on ad spend 3.46×
Your break-even numbers
Green = within your profitable limit · red = past it. Limits include your monthly fees.
Your profit gap — same budget
+$13,602/month left on the table
Fixing everything below together would take net profit from $12,308 to $25,910/month without spending a dollar more.
Budget, delivery & pacing
Daily budget
$164
monthly ÷ 30.4
Clicks per day
25
Impressions / month
—
Add your CTR to see this
Cost per 1,000 impressions
—
Month-to-date pacing
Day 5 of 30 — 17% of the month gone.
Enter what you've spent so far to see whether you're on pace for $5,000 this month.
Profit vs ad spend — where should your budget be?
Profit is still rising at $15,000/month ($24,453 net) — there may be room to scale further. Spending more would make you more money.
Model assumes cost per click rises as you spend more (auction pressure 0.25). Adjust it in your settings.
Your biggest levers (same budget)
Lift conversion rate by 20%
Message-matched landing pages, faster pages, stronger offers.
+$3,462/month
net $15,769 · ROAS 6.92×
Lower cost per click by 15%
Better Quality Score: relevant ads, keywords and landing pages.
+$3,054/month
net $15,362 · ROAS 6.79×
Close 15% more leads
Faster follow-up, lead scoring and nurture emails.
+$2,596/month
net $14,904 · ROAS 6.63×
Raise order value by 10%
Bundles, upsells and pricing changes.
+$1,731/month
net $14,038 · ROAS 6.35×
Directional model based on your inputs. Industry defaults are rounded starting points, not published benchmarks — replace them with your own ad platform and accounting figures. Likely range = ±20% conversion rate and ±10% cost per click. Last updated November 2026.
Transparent Profit Formulas
ROAS Isn't Profit
ROAS
Return on ad spend: revenue ÷ ad spend. A 4× ROAS means $4 of revenue for every $1 of ads — but whether that is profitable depends on your margin.
POAS
Profit on ad spend: gross profit ÷ ad spend. Above 1× (after fees) means your ads pay for themselves.
Break-even ROAS
The ROAS you need just to cover product costs, ad spend and fees. At a 40% margin with no fees it is 2.5×.
Cost per customer
Everything you spend on ads and fees ÷ new customers won. It must stay below what a customer is worth to you in gross profit.
Common Questions About Ad Profitability
What does the Paid Advertising Profitability Calculator do?
It turns your ad spend, cost per click, conversion rates, order value and margin into real profit — after product costs, ad spend and agency or tool fees. It also shows your break-even ROAS, the most you can afford per click, lead and customer, the budget where profit peaks, and which improvements would add the most profit.
Why is ROAS not the same as profit?
ROAS only compares revenue with ad spend. It ignores the cost of the products or services you sell and any fees. A business with a 30% margin needs a ROAS above 3.3× just to break even — so a "good-looking" 3× ROAS can still be losing money.
What is a good break-even ROAS?
There is no universal number — it depends on your margin. Break-even ROAS is roughly 1 ÷ gross margin (before fees): 2× at a 50% margin, 2.5× at 40%, 4× at 25%. The calculator works out yours, including fees.
What are "wasted clicks"?
Clicks from searches that could never become customers — irrelevant keywords, job seekers, competitors' brand names and so on. Your search terms report shows them. Cutting them is often the fastest way to improve profit without spending more.
How does the profit-vs-spend curve work?
As you raise your budget you usually pay more per click, because you win more competitive auctions. The "auction pressure" setting models that: at 0.25, doubling spend raises cost per click by about 19%. The curve shows where your net profit peaks so you can tell whether to scale up, hold or cut back.
Are the industry defaults real benchmarks?
No — they are rounded, conservative starting points so the calculator works straight away. For an accurate result, replace them with your own numbers from Google Ads, Meta Ads Manager or LinkedIn Campaign Manager and your accounts.
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