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Ads Profit Calculator

Quickly calculate if you're going to be profitable with advertising!

Not sure what each metric is? Read the guide

Website Metrics

(Purchase conversion rate)

Ads Metrics

(Ad Link CTR)

Website Analysis

Clicks needed per sale:~50
Revenue per visitor:$3.40
Max Cost per Click:$3.00
Max Customer Acquisition Cost:$150

Campaign Projections

Total clicks:333
Expected sales:6
Total sales value:$1020.00
Net Profit:
$400.00x2.04 ROI

Tips & Warnings:

  • 💡 A visitor will generate $3.00 of profit. It means you should avoid paying more than that for a click.
  • 💡 It seems like ads could be profitable for you. If you can keep a consistent acquisition cost, you can scale your business with ads.

How We Calculate Your Net Profit

Here’s a simple, 3-step breakdown of the calculation using your numbers:

1

Clicks

Your $500 budget at $1.5 per click gets you...

333 clicks
2

Sales

With 333 clicks on your ad and a 2% conversion rate, you can expect around...

6 sales
3

Profit

6 sales at $150 profit each is $900. Minus your $500 ad spend, you get...

$400.00

net profit

What are those numbers?

Customer Acquisition Cost (CAC)

This is the total amount of money you spend to get one customer. If you spend $100 to get 10 customers, your CAC is $10.

Average Sale Value / Lifetime value

- If you have one-time purchases, this is how much customers spend on average (including repeated purchases).
- If you sell subscription, it's the total amount of revenue you get from one customer (ex: over one year).

Profit per sale

This is the amount of money you make on each sale. If you sell a product for $20, and you have $3 of costs, the profit per sale is $17.

Conversion rate

This is the %age of people who buy your product compared to the visitors. If you have 100 visitors, and 3 of them buy your product, your conversion rate is 3%.

Pricing Models

CPM (Cost Per 1000 impressions): You pay for every 1000 times your ad is shown. Common on Facebook, Instagram, Display Networks, and YouTube.

CPC (Cost Per Click): You only pay when someone clicks your ad. Common on Google Search, Bing, LinkedIn, and Twitter.

CPM (Cost Per 1000)

This is the cost per 1000 impressions. If you pay $10 for 1000 impressions, your CPM is $10.

CPC (Cost Per Click)

This is the amount you pay each time someone clicks on your ad. If you pay $100 for 100 clicks, your CPC is $1.

CTR (Click-through rate)

This is the percentage of people who click on your ad. If your ad get 1000 impressions, and 15 people click on it, the CTR is 1.5%. (Only relevant for CPM model)

Budget

This is the amount of money you want to spend on ads.