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How much to spend on ads
and will it pay back
Budget arguments usually happen without math. Here is all of it, from profit on a single sale to the full monthly cost with the contractor and taxes. At the end, a verdict on whether the budget carries your goal and what to change if it doesn't.
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- Formulas are open on the page
- Our prices are the “from” prices of the service pages
Calculated right in your browser. Nothing leaves this page until you press the button yourself
Verdict-Example by niche illustrative numbers, not our results
Result
Verdict
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The request form opens with your calculation already in the message. You can edit it before sending.
How we calculate
Profit per sale
Order value × Margin - delivery - payment fee - returns
Returns are Order value × return rate: a returned order brought no money.
Max customer cost
Profit per sale × Purchases per customer in the period
What you can pay for a customer and break even over the chosen period.
Break-even ROAS
Order value ÷ Max customer cost
Below this first-purchase ROAS the ads lose money. A “good ROAS of 2-3” can be a loss.
Max cost per lead
Max customer cost × Lead to sale rate
Budget for the goal
Sales in the goal × Cost per sale, where Cost per sale = Cost per lead ÷ Conversion
Full monthly cost
Budget × (1 + tax) + contractor fixed fee + contractor % × budget + creatives and tools
Compare this amount with profit, not just the spend in the ad account.
Learning minimum
50 events × cost per event × ad sets a week, × 30.4 ÷ 7 a month
Meta recommends about 50 optimization events in 7 days per ad set to exit the learning phase.
Let's check it on your data
A free 30-minute call: we look at your numbers and tell you where the calculation and reality part ways.
Discuss this with the teamHonest about the math
The niche examples are illustrative, a sample calculation rather than our result or a promise. Cost per click and conversion depend heavily on the country, niche and site, so we don't quote country averages. The learning rule is Meta's wording of “about 50 events”, not a hard threshold. The first honest conclusions about ads come after 4-8 weeks, not 3 days.
This is a reference point, not a promise of results. Our prices here are “from” prices, the exact amount is fixed in writing after an audit.
Questions
Why can a ROAS of 3 be a loss?
ROAS is counted on revenue, but you pay out of margin. If a $50 order leaves $11.50 after cost of goods, delivery and fees, break-even ROAS is about 4.3, and a ROAS of 3 means a loss on every sale.
Why count repeat purchases?
If a customer buys 2-3 times in six months, you can pay 2-3 times more for them. Without this, budgets get cut where ads actually pay back.
What is the learning minimum?
Meta recommends about 50 optimization events in 7 days per ad set. With fewer, the algorithm learns slowly and the numbers jump. That is why small budgets optimize for a more frequent event or keep a single ad set.
What is the minimum budget you take on?
Test budget from $1,500 a month per platform, management from $300 a month. The exact minimum for your goal is calculated in the audit and fixed in writing.
Can I send you my calculation?
Yes. The button under the result opens the form with the calculation already in the message. On the call we check the numbers on your data.
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