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E-commerce advertising ROI/ROAS profit and loss calculator that accounts for profit margins, return rates, and hidden costs to quickly assess whether your ad spending is profitable
Enter ad spend and GMV to calculate
Overview
Understand what the tool solves, how it works, and the boundaries of its data.
Return on ad spend (ROAS) compares the sales value assigned to a campaign with the ad dollars spent: ROAS = GMV ÷ ad spend. A 4.00 ROAS means $4 of entered gross merchandise value (GMV) for each $1 of entered ad spend; it does not mean $4 of profit. The calculator also estimates gross profit, gross ROI, net profit, net ROI, a break-even ROAS, and a simple profit/break-even/loss status from the figures you enter.
Here, the entered product profit margin is applied to GMV, then the entered return rate reduces that margin-based amount for net profit. The gross profit and gross ROI outputs use GMV × margin without subtracting returns. The net estimate also subtracts ad spend and other costs. This is a defined worksheet calculation, not a connection to an ad account or an attribution report.
ROAS = GMV ÷ ad spend
Gross profit = GMV × profit margin
Gross ROI = gross profit ÷ ad spend
Net profit = GMV × margin × (1 − return rate) − ad spend − other costs
Net ROI = net profit ÷ ad spend × 100%
Break-even ROAS = (ad spend + other costs) ÷ [ad spend × margin × (1 − return rate)]
Google Ads guidance likewise distinguishes ROI, based on profit and costs, from campaign value reporting. Its ROI method depends on campaign goals, so use that platform’s own tracked values when reconciling account reports. Source: Google Ads Help, “About return on investment (ROI)” — supports the distinction between revenue and profit-based return; checked September 28, 2026.
Guide
Follow the workflow and verify inputs and outputs with practical examples.
Enter positive ad spend and the GMV you want to evaluate. Keep both amounts in the same currency and use the same campaign window and order set.
Enter product profit margin as a percentage. For example, a $100 sale with $70 of product cost leaves a 30% product margin before any costs you place in “other costs.”
Enter the return rate as a percentage, or leave it blank if you want the calculation to use zero. Add shipping, packaging, support, or other expenses in the cost field; blank other costs are treated as zero.
Read the results together: ROAS is a sales-to-ad-spend multiple, gross ROI is shown as a ratio, net ROI is shown as a percentage, and net profit is an amount. The status is based on net profit: above $1 is labeled profit, within $1 of zero is break-even, and below that is loss.
Example: $8,000 ad spend, $32,000 GMV, 35% margin, 15% returns, and $1,200 other costs produce 4.00 ROAS. Gross profit is $11,200 and gross ROI is 1.40. Estimated net profit is $32,000 × .35 × .85 − $8,000 − $1,200 = $320; net ROI is 4.00%, and break-even ROAS is about 3.86.
Use cases
See how the tool fits into real work and everyday tasks.
A store operator can run the same calculation for two campaigns using matching attribution windows and cost definitions. Compare the net estimates only after checking that GMV, return rate, margin, and additional costs cover comparable orders.
A marketer can change the assumed return rate or other costs to see how much the estimated net result shifts. Use the sensitivity to identify which inputs deserve better records, not as a forecast that the campaign will reach a particular outcome.
Q&A
Find concise answers to common questions and confusing cases.
ROAS compares GMV with ad spend only. Product margin, returns, ad spend, and other costs determine the calculator’s net profit, so a large sales multiple can still leave a negative result.
Gross ROI divides GMV times the entered margin by ad spend. Net ROI uses the return-adjusted margin amount, subtracts ad spend and other costs, then divides by ad spend; it is displayed as a percentage.
This calculator’s break-even output also accounts for the entered return rate and other costs relative to ad spend. With no returns or extra costs, it reduces to 1 ÷ margin.
Only amounts reflected in the margin, return-rate, and other-cost fields affect the estimate. Enter additional costs in the other-cost field if appropriate; the calculator does not classify taxes, fees, or refund types for you.
Notes
Review scope, result limitations, and important precautions before use.
This calculator does not retrieve campaign attribution, reconcile an ad platform’s conversion values, or determine which orders came from advertising. Its dollar sign is a display convention: use one currency consistently across all monetary inputs. The formulas simplify returns to a percentage reduction and do not separately model partial refunds, inventory recovery, taxes, payment fees, or fixed overhead unless you include suitable amounts in your inputs. Different businesses define product margin and campaign costs differently, so verify your assumptions before using the result for budgets or financial reporting.
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