Ad Spend ROI Calculator
ROAS, ACoS, TACoS, and true ad ROI for Amazon PPC, eBay Promoted, Meta, and TikTok Ads.
Calculator setup
Country changes currency, presets, Sales tax wording and relevant marketplace fields.
Core pricing
Minimum inputs only. Fee presets run automatically in the background.
Ad Performance
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Cost Structure
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Results update automatically
Specialist notes
Calculate advertising ROI across all major ad platforms. Works for Amazon PPC (ACoS/TACoS), eBay Promoted Listings, Meta Ads (Facebook/Instagram), TikTok Ads, and Google Shopping.
ACoS (Advertising Cost of Sale) = Ad Spend ÷ Ad Revenue × 100. Your target ACoS should be below your net margin percentage to remain profitable on ad-driven sales.
TACoS (Total Advertising Cost of Sale) = Ad Spend ÷ Total Revenue × 100. TACoS is a better metric than ACoS for scaling decisions because it shows ad cost relative to your total business.
ROAS (Return on Ad Spend) = Ad Revenue ÷ Ad Spend. A ROAS of 4x means you generate $4 in revenue for every $1 spent on ads. But a 4x ROAS isn't necessarily profitable — you need to account for all other costs.
True ad ROI = (Ad Revenue − (Ad Revenue × Total Cost %) − Ad Spend) ÷ Ad Spend. A high ROAS can still result in negative ROI if margins are thin.
Scale ads when ACoS is comfortably below your net margin. Reduce budget when ACoS exceeds net margin. Never run ads that make individual sales unprofitable unless you have clear LTV data.
How to Measure True Advertising ROI for eCommerce in 2026
Most eCommerce sellers measure advertising success with ROAS (Return on Ad Spend) — but ROAS alone doesn't tell you whether your ads are profitable. A 4x ROAS might look impressive, but if your product cost, platform fees, and fulfilment consume 80% of revenue, a 4x ROAS means you're losing money on every ad-driven sale. True ad ROI calculation requires knowing your full cost structure (COGS, platform fees, fulfilment, overhead) to determine the break-even ROAS for your specific business. This calculator goes beyond surface-level ROAS to show you actual profitability per advertising dollar spent.
