Facebook Ads ROI Calculator
(Net Profit, ROAS and Break-Even ROAS)
Enter your ad spend and the revenue the ads brought in. Add product costs and fees to see net profit, return on ad cost and the ROAS you need to break even.
Revenue from your ads
Amount spent in Meta Ads Manager for the period
Purchase conversion value reported for the same period
Number of purchases attributed to the ads. Also used for cost per purchase
Costs besides ad spend (optional)
Cost of the goods, shipping and payment fees as a share of revenue
Result
💡 Formula Guide
This Facebook ads ROI calculator shows whether a campaign made money after the costs that ROAS leaves out. Enter your ad spend and the revenue the ads brought in, then add product costs and any agency or creative fees. It returns net profit, return on your advertising cost, ROAS and the ROAS you need to break even.
How Facebook Ads ROI Is Calculated
A campaign spends $2,000 and brings in $8,000 of revenue. Product and fulfilment costs are 40% of revenue, so gross profit is $4,800. An agency fee of $300 and $100 of creative costs bring total advertising cost to $2,400. Net profit is 4,800 − 2,400 = $2,400 and ROI is 100%.
With 100 purchases, the cost per purchase is $20 and the profit per purchase is $24.
ROAS Is Not Profit
The same campaign has a ROAS of 4.0. ROAS compares revenue with ad spend and nothing else. The table keeps the $2,000 spend, $400 of fees and ROAS of 4.0 and changes only the product cost.
| Product cost (% of revenue) | Gross profit on $8,000 | Net profit | ROI |
|---|---|---|---|
| 20% | $6,400 | $4,000 | 166.7% |
| 40% | $4,800 | $2,400 | 100% |
| 60% | $3,200 | $800 | 33.3% |
| 70% | $2,400 | $0 | 0% |
| 80% | $1,600 | −$800 | −33.3% |
A ROAS of 4.0 is a strong profit at a 20% product cost and a loss at 80%. The ROAS Calculator covers ROAS on its own.
Break-Even ROAS
Margin here is 1 minus the product cost percentage. With a 60% margin, $2,000 of spend and $400 of fees, break-even ROAS is 2,400 ÷ 1,200 = 2.0. Any ROAS above 2.0 is profit. With no fees the formula becomes 1 ÷ margin, which is 1.67 at a 60% margin.
Use the break-even figure as the floor when you judge a campaign in Ads Manager. The Break-Even ROAS Calculator works it out from a product's price and costs.
Getting the Inputs Right
- Same period for everything. Spend, revenue and fees should cover the same dates.
- Same attribution setting. The revenue Ads Manager reports depends on the attribution setting of the ad set. Compare campaigns measured the same way.
- All product costs. Include the cost of the goods, shipping you pay, packaging and payment processing fees.
- Refunds. Reported purchase value does not fall when an order is refunded later. Reduce revenue by your refund rate for a stricter figure.
- Repeat purchases. The calculator counts only revenue in the period. Customers who buy again later are not included.
For cost per purchase alone, see the CPA Calculator. For the cost of gaining a customer across all channels, use the CAC Calculator.
How to Use the Facebook Ads ROI Calculator
- Choose how to enter revenue: Pick the first option if Ads Manager reports purchase value. Pick the second to multiply purchases by an average order value.
- Enter ad spend: Type the amount spent for the period.
- Enter revenue or purchases: Type the revenue from the ads, or the number of purchases and the average order value.
- Add product costs: Optional. Type the cost of goods, shipping and payment fees as a percentage of revenue.
- Add fees: Optional. Type agency or freelancer fees and creative or tool costs for the same period.
Frequently Asked Questions
How do I calculate ROI on Facebook ads?
Take the revenue the ads produced, subtract product costs and everything spent on advertising, and divide by the advertising cost. $8,000 of revenue with 40% product costs leaves $4,800. Less $2,400 of ad spend and fees, net profit is $2,400, and ROI is 2,400 ÷ 2,400 = 100%.
What is the difference between ROAS and ROI?
ROAS is revenue divided by ad spend. It ignores what the products cost you. ROI uses profit, so it shows whether the ads made money. $8,000 from $2,000 of spend is a ROAS of 4, and in the example on this page it is an ROI of 100%.
What is break-even ROAS?
It is the ROAS at which profit is zero. Divide total advertising cost by your margin times ad spend. With a 60% margin, $2,000 of spend and $400 of fees, break-even ROAS is 2,400 ÷ (0.60 × 2,000) = 2.0. Without fees it is 1 ÷ 0.60 = 1.67.
Can a high ROAS still lose money?
Yes. If product costs take 70% of revenue, a ROAS of 3 leaves 90 cents of margin for each dollar of ad spend, which is a loss before any fees.
Which revenue figure should I use?
Use the purchase value reported for the same period and the same attribution setting each time. Ads Manager credits a purchase to an ad according to the attribution setting on the ad set, so changing the setting changes the revenue figure.
Does this work for Instagram ads?
Yes. Instagram ads are bought through the same Meta Ads Manager, and the arithmetic is the same for any ad platform.
Formulas and worked examples checked in October 2026.