Keep your profit.
Know your ad limit.
Find the most you can spend on advertising after refunds, platform fees and the profit you want to keep.
What can your sales support?
Use one month of orders from the same paid-acquisition scenario. The order count is your assumption; this tool does not predict how many sales a budget will buy.
Maximum monthly ad spendunder your sales and cost assumptions
ROAS needed for this goal
REVENUE ÷ AD SPENDCompare with the revenue basis your ads dashboard reports. These are economic thresholds, not recommended bidding settings.
Cover costs, keep $0 profit.
- Monthly ad spend ceiling
- —
- Ad cost per initial order
- —
- ROAS · sales before refunds
- —
- ROAS · revenue after refunds
- —
Spend limits round down to cents; required ROAS rounds up. The planner uses the displayed per-order limit, which may leave a little extra profit.
Where the ad allowance comes from
Try a tougher month
Each row changes one assumption and keeps your profit goal. Select a row to use it.
How the ad budget is calculated
First calculate profit with advertising set to zero. Subtract the monthly profit you want to keep. What remains is the maximum advertising allowance at the order count you entered.
Ad allowance = sales after refunds − transaction fees − other operating costs − target profit.
Divide that allowance by initial orders for the per-order ad-cost limit. Divide the chosen revenue figure by the allowance for ROAS. If no money remains for advertising, there is no positive ad budget that meets the goal.
A $29 product, with $1,000 left to keep
In this fictional example, 100 orders generate $2,900 before refunds. Allow 5% refunds ($145), illustrative transaction fees of 5% + $0.50 ($195, all retained after refunds), $1 support per order ($100) and $150 other monthly costs. There is no platform monthly fee or creation-cost allocation.
That leaves $2,310 before ads. Keeping $1,000 in profit allows $1,310 in advertising, or $13.10 per initial order. The exact pre-refund revenue ROAS threshold is about 2.21374×; the tool rounds it up to 2.22×. The fees are fixed teaching assumptions, not a provider quote.
What this budget does—and does not—tell you
It is a ceiling under your assumptions. Spending that amount does not guarantee the orders, and a calculated allowance does not prove you have the cash to fund a campaign. A lower order count spreads fixed costs and your profit goal across fewer sales. Try the tougher-month scenarios before using a result.
A paid-acquisition scenario is different from a whole business with organic and repeat sales. Keep the orders, revenue and allocated costs on the same basis. ROAS is also different from profit: changing the conversion value sent to an ad platform changes its reported ratio.