Advertising
Campaign Profit Calculator
Profit in dollars after cost of goods and media — not a ROAS multiple.
Profit in dollars, not a multiple
ROAS compares revenue to ad spend and ignores what the goods cost, which is why a campaign can post a respectable ROAS and lose money. This works the other way round: revenue, minus cost of goods, minus media. What is left is what the campaign made.
A worked example of why ROAS misleads
$24,000 of revenue on $8,000 of spend is 3x ROAS, which sounds good. If goods cost 55% of revenue, gross profit is $10,800, so the campaign cleared $2,800 — a 12% net margin, not a 200% return. And at 70% cost of goods the same 3x ROAS loses money.
Attribution is the weak link
The revenue figure comes from somewhere, and platform-reported revenue is generally higher than what reaches the bank — different attribution windows, view-through conversions, and sales that would have happened anyway. Use your own order data where you can, and treat a platform number as the optimistic end of a range.