Advanced Facebook Ad ROI Calculator

ROI (Return on Investment) measures the profitability of your ads by comparing net profit to ad spend. It shows what percentage return you're getting on your advertising dollars after accounting for all costs.

ROAS (Return on Ad Spend) measures revenue generated per dollar spent on ads, without considering other costs. While ROAS shows advertising efficiency, ROI shows true profitability.

A good Facebook ad ROI varies by industry, but generally:

• 5:1 ROI (500%) is excellent (for every $1 spent, you make $5 profit)
• 2:1 ROI (200%) is considered good
• 1:1 ROI (100%) means you're breaking even

E-commerce businesses often aim for at least 3:1 ROI to account for product costs and overhead.

Yes, for accurate ROI calculations. While ROAS only considers ad spend vs. revenue, true ROI should account for all costs associated with the products or services sold through your ads.

Our calculator allows you to input Cost of Goods Sold (COGS) and other expenses to give you a realistic picture of your advertising profitability. This helps prevent situations where ads appear profitable based on revenue alone, but actually lose money when product costs are considered.

Here are proven strategies to improve your Facebook ad performance:

• Better targeting: Refine your audience using lookalike audiences and detailed targeting
• Improve creatives: Test different ad formats (video, carousel) and compelling copy
• Landing page optimization: Ensure your landing pages convert visitors effectively
• Retargeting: Create campaigns for website visitors who didn't convert
• Bid strategy: Test different bidding options (conversions, value optimization)
• Seasonal adjustments: Increase budgets during high-conversion periods