What is a Profitable Return on Paid Ads?

You can estimate this by calculating your Return on Ad Spend (ROAS) below.
ROAS is a marketing metric that measures the amount of revenue your business earns for each dollar it spends on ads.

Fill out the fields before to get an estimate of what you need to run a profitable paid ad campaign.

Monthly Ad Spend Budget:

Recommended minimum: $1000/month

For paid ads to be effective, it requires enough budget to train the ad platform algorithm to "find" people who are most likely to respond to your goal.

Cost Per Click (CPC):

Recommended minimum: $2.00

The average cost-per-click depends on your industry. It can range from $2-$8.

Click Through Rate (CTR):

Recommended minimum: 2.5%

This metric also depends on your industry. We have seen eCommerce CTRs as high as 10%.

Product/Service Price:

Assign a value to your Product or Service

If you have multiple products or services, we recommend you use the average dollar value, or use the value of your most popular one.

Sales/Leads Conversion Rate:

Recommended minimum: 2.5%

On average, eCommerce traditionally has a lower conversion rate than B2B.

Profit Margin:

Recommended minimum: 25%

This is calculated by the formula: revenue - cost. This is how much profit you take on every sale. The higher the profit margin, the lower the ROAS needed to be profitable.


Number of Impressions:


Number of Clicks:


Number of Sales/Leads:


Expected Revenue:


Cost per Sale/Lead:




Return on Ad Spend