Ecommerce Profitability Calculator

Free profitability calculator 🧮 Discover your real margin before spending on ads 📊 Free profitability calculator 🧮 Discover your real margin before spending on ads 📊 Free profitability calculator 🧮 Discover your real margin before spending on ads 📊 Free profitability calculator 🧮 Discover your real margin before spending on ads 📊

🧮 Free calculator Ecommerce Profitability Calculator Calculate how much you need to invest in Facebook and Instagram ads to reach your sales goal, how much you can pay per purchase and what ROAS your campaigns must hit. Results update instantly. ✓ 100% free · ✓ Instant results · ✓ We do not store your data

Your data

STEP 1

How much do you want to sell?

Your sales goal for the period

What is your average order value?

Last month revenue ÷ number of sales (check your ecommerce platform or Google Analytics)

Number of sales needed {{ calcVentas }}

STEP 2

% you are willing to invest to acquire a new customer

It is usually between 20% and 30% (see the note below)

Result

TARGET COST PER PURCHASE KPI FOR META ADS {{ calcCpa }} The most you can pay in ads for each sale to stay profitable. It is the KPI you set in your Meta Ads conversion campaign.

REQUIRED INVESTMENT {{ calcInversion }} The ad budget you need to reach your sales goal.

TARGET RETURN ON AD SPEND (ROAS) {{ calcRoas }}x For every $1 spent on ads, your campaigns should bring in this much in sales.

🚨 Important note: the % does not have to be your entire profit margin, but the % you are willing to invest to acquire a new customer. For example, if your margin is 35% but you want to keep at least 15% profit, the % you are willing to invest to acquire a new customer would be 20%. With that number and the sales you want, you will know exactly what budget your ads need.

Reference estimate: real results depend on your campaign performance, your conversion rate and your business seasonality.

What does each metric mean? So you make decisions with data, not by eye.

Number of sales needed How many purchases you need to reach your goal: your sales goal divided by your average order value.

Target cost per purchase The most you can pay in advertising for each sale: your average order value multiplied by the % you are willing to invest. It is the CPA you should set as your goal in Meta Ads.

Required investment Your total ad budget to reach your goal: the number of sales needed multiplied by your target cost per purchase.

Target ROAS The return on ad spend your campaigns must achieve: your sales goal divided by the required investment. If your ads return less than this, you will not reach your goal with the planned budget.

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