Ad Spend ROI Calculator
Calculate true return on your advertising investment. Factor in customer lifetime value to see the real picture, not just immediate returns.
Ad Campaign Inputs
Campaign Metrics
Platform Benchmarks
Google Ads
- Avg CPC: $1-2 (Search), $0.50-1 (Display)
- Avg CTR: 3-5% (Search), 0.5-1% (Display)
- Avg Conv Rate: 3-5%
- Good ROAS: 4x+
Facebook/Instagram
- Avg CPC: $0.50-2
- Avg CTR: 0.9-1.5%
- Avg Conv Rate: 1-3%
- Good ROAS: 3x+
LinkedIn Ads
- Avg CPC: $5-10
- Avg CTR: 0.4-0.6%
- Avg Conv Rate: 2-5%
- Good ROAS: 2x+ (B2B)
TikTok Ads
- Avg CPC: $0.50-1
- Avg CTR: 1-3%
- Avg Conv Rate: 1-2%
- Good ROAS: 2x+
Scaling Scenarios
See how doubling or tripling your ad spend might impact results (assuming diminishing returns).
| Spend Level | Monthly Spend | Est. CPA | Est. Conversions | Est. Revenue | Est. Profit |
|---|
Understanding Ad ROI Metrics
ROAS vs ROI
ROAS (Return on Ad Spend) = Revenue / Ad Spend. A 3x ROAS means $3 revenue for every $1 spent.
ROI (Return on Investment) factors in all costs including product costs, not just ad spend.
Why LTV Matters
Immediate ROAS only shows first-purchase revenue. If customers buy repeatedly, you can afford higher CPAs.
A $50 CPA looks bad for a $40 product but great if customer LTV is $500.
Break-Even CPA
The maximum you can pay per customer while still being profitable:
Break-Even CPA = AOV × Margin
LTV Break-Even = LTV × Margin
Scaling Considerations
Doubling ad spend rarely doubles results. Expect 10-30% higher CPAs as you scale due to:
- Reaching less qualified audiences
- Ad fatigue
- Increased competition