Meta (Facebook & Instagram) Ads ROAS Calculator
Simulate paid social media ad spend, break-even ROAS, and net take-home profit on Meta advertising campaigns.
Parameters & Config
Total paid media budget allocated across advertising channels
Total gross revenue attributed to the advertising campaign
Cost percentage to manufacture, source, or fulfill the purchased products
Average checkout dollar value per transaction
Gross revenue generated per dollar spent on advertising
Net take-home cash after ad spend and product cost deductions
Key Metrics & Sub-Totals
3 itemsCalculation Summary & Unit Breakdown
| Metric | Calculated Value | Notes / Logic |
|---|---|---|
| Total Advertising Spend | $10000.00 | Paid media budget |
| Gross Revenue Generated | $28000.00 | Ad-driven GMV |
| Product Cost (COGS) | 35% | $9800.00 total cost |
| Return on Ad Spend (ROAS) | 280% | 2.80x spend |
| Break-Even ROAS Threshold | 153.8% | Minimum to avoid loss |
| Net Profit from Advertising | $8200.00 | After ads & product cost |
| Effective Cost Per Acquisition (CPA) | $26.79 | Based on $75 AOV |
| Net Profit Margin on Ad Revenue | 29.3% | Take-home return |
Overview & Methodology
Meta Ads (Facebook Feed, Instagram Reels, Stories) remain the premier direct-response channel for e-commerce brands. Simulating ROAS against product margins ensures media buyers avoid scaling unprofitable ad sets.
Mathematical Formulation
ROAS % = (Ad Revenue / Ad Spend) × 100. Net Profit = Revenue - Ad Spend - Product COGS.Optimization Best Practices
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Frequently Asked Questions
Q.What is a good ROAS for Facebook and Instagram Ads?
A ROAS between 250% and 350% (2.5x to 3.5x) is considered healthy for DTC e-commerce brands with 30%–40% COGS.
Q.How much profit is generated on $10k spend at 280% ROAS with 35% COGS?
$10k spend generates $28k sales. Deducting $9.8k COGS (35%) and $10k ad budget leaves $8,200 net profit (29.3% net margin).
Q.What is the break-even ROAS if product cost is 35%?
With a 65% gross margin, break-even ROAS is 153.8% (1.54x).