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Facebook/Meta Ads Profitability & ROI Calculator

For every rupee you spend on Facebook and Instagram ads, how much are you *really* profiting? Use this essential tool to calculate the true profitability of your campaigns by factoring in all associated costs.

Campaign Financial Data

Total Revenue Generated by Ads

₹

Total sales amount directly from the campaign.

Total Facebook/Meta Ad Spend

₹

The amount paid to Meta for the ads.

Total Cost of Goods Sold (CoGS)

₹

Cost to produce, acquire, or deliver the items sold.

Other Campaign Costs (Fees, Labor, etc.)

₹

Agency fees, content creation, employee time, etc.

Campaign Performance Results

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Return on Ad Spend (ROAS)

Revenue / Ad Spend

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Net Profit

Revenue - All Costs

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Return on Investment (ROI)

(Profit / Total Cost) * 100

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ROAS vs. ROI: Why Business Owners Need Both

Digital marketing success is often measured by vanity metrics, but what truly matters is profitability. Many marketers focus only on **ROAS** (Return on Ad Spend), which tells you how effective your *ad dollars* were. However, to truly understand your business's financial health, you need **ROI** (Return on Investment).

Key Metrics Explained:

• **ROAS (Return on Ad Spend):** This is the ratio of Revenue to Ad Spend. A ROAS of 3x means you made ₹3 in revenue for every ₹1 spent on ads. This metric is a good indicator of ad platform efficiency.
• **Net Profit:** This is the cash you actually pocket after subtracting ALL costs (Ad Spend, CoGS, and Overhead). If this number is negative, your campaign is actively losing money, regardless of a positive ROAS.
• **ROI (Return on Investment):** This is Net Profit divided by Total Cost. It’s the ultimate measure of financial success. An ROI of 50% means you earned a 50% return on all the money (ads, goods, labor) you put into the campaign.

For small business owners, maximizing cash flow and ensuring every marketing effort contributes to personal wealth is paramount. Use this tool to make smarter decisions about which campaigns to scale and which to cut.

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