How to Use This Calculator
- Enter your Advertising Spend - the total amount spent on advertising campaigns
- Input the Number of Conversions - total customer actions resulting from your ads
- Specify the Average Revenue per Conversion - average profit from each customer action
- Click the Calculate button to see your results
Understanding the Results
- Total Profit: The net profit from your advertising campaign after subtracting ad costs
- Profit Margin: The percentage of revenue that remains after all expenses are paid
- Return on Ad Spend (ROAS): Shows how many dollars of revenue are generated for every dollar spent on advertising
Example Scenario
If you spent $1,000 on advertising, generated 50 conversions, and earned $25 per conversion:
- Total Revenue: $1,250
- Total Profit: $250
- Profit Margin: 20%
- ROAS: 1.25x
Optimization Tips
Use this calculator to:
- Compare performance across different advertising channels
- Set realistic advertising budgets
- Identify campaigns that need optimization
- Track performance over time to measure improvements