Marketing ROI calculator
Find out whether your ads, SEO or email campaigns actually make money. See ROAS, cost per customer, lifetime value, break-even numbers and the month your spend pays back, then test what-if scenarios before you change the budget.
What each number means
The formulas the calculator uses, in plain words. “Total cost” is ad spend plus your other monthly costs; “profit per sale” is order value × gross margin.
ROAS (return on ad spend)
Revenue ÷ ad spendHow much revenue each unit of ad spend brings back. It ignores product costs and fees, so compare it with your break-even ROAS.
ROI (return on investment)
(Gross profit − total cost) ÷ total costProfit after everything you spent, including agency fees and tools, as a percentage of that spend.
Cost per lead (CPL)
Total cost ÷ leadsWhat you pay for each enquiry, sign-up or form fill.
Cost per customer (CAC)
Total cost ÷ new customersWhat it costs to win one paying customer. The single most useful number for scaling.
Customer lifetime value (LTV)
Order value × purchases × marginGross profit one customer brings over their whole relationship with you. For subscriptions: monthly price × margin ÷ monthly churn.
LTV : CAC
Lifetime value ÷ cost per customerHow many times a customer pays back what they cost. 3 : 1 or better is a common target.
Break-even ROAS
(Ad spend + other costs) ÷ margin ÷ ad spendThe ROAS you need just to cover costs on the first sale. Below it, the campaign loses money.
Break-even conversion rate
Total cost ÷ (visitors × close rate × profit per sale)The lowest conversion rate at which the campaign pays for itself.
Max cost per click
Conversion rate × close rate × profit per sale − other costs per clickThe highest bid you can afford per click before you start losing money.
Questions about marketing ROI
What is a good ROAS?
It depends on your margin. Break-even ROAS is 1 ÷ your gross margin: at a 40% margin you need 2.5× just to cover the ad spend, before other costs. The calculator works out your own break-even ROAS, including agency fees and tools.
What is the difference between ROI and ROAS?
ROAS is revenue divided by ad spend, so it ignores product costs and fees. ROI is profit after all costs divided by everything you spent. A campaign can show a 3× ROAS and still lose money if margins are thin, which is why this calculator shows both.
How is customer lifetime value (LTV) calculated here?
For e-commerce and services: order value × number of purchases per customer × gross margin. For subscriptions: monthly price × margin × average lifetime in months, where lifetime is 1 ÷ monthly churn. It is gross profit, not revenue.
What LTV to CAC ratio should I aim for?
Many growth teams aim for 3 : 1 or better, so each customer brings three times what it cost to win them. Below 1 : 1 every new customer loses money; between 1 and 3 leaves little room for overheads.
Why does the month-by-month profit differ from the first-month profit?
Customers you win in earlier months keep buying (or keep paying their subscription), so revenue builds up while the monthly cost stays the same. The chart shows when the running total turns positive: your payback month.
Are the channel presets accurate for my business?
No — they are example starting points only. Cost per click, conversion rate and close rate vary widely by industry, country and offer. Replace them with numbers from your own ad account, analytics and sales records.
Want better numbers, not just a calculation?
Our team runs Google Ads, SEO and conversion-rate work focused on cost per customer and profit, not clicks. Find more customers with the keyword research tool or check your site with the free SEO audit.