Free Tool
Marketing Budget & ROAS Calculator
Check whether your ads are actually making money, plan the budget a revenue target needs, and work out what a customer really costs. Runs in your browser; nothing is saved.
For a campaign that has already run. Pre-filled with example numbers; replace them with yours.
Work backwards from a monthly revenue target. Uses one blended cost per click across channels.
For businesses that sell through enquiries and a sales conversation (B2B, real estate, high-ticket services).
How to use this calculator
- Pick a currency. The INR / USD switch only changes how numbers are displayed. It does not convert anything.
- Pick the tab that matches your question. Use ROAS & break-even to judge a campaign that has already run, Budget planner to work backwards from a revenue target, and Lead gen funnel if you sell through enquiries and a sales team.
- Replace the example numbers with your own. Results update as you type. Use revenue from your own store, CRM or analytics where you can, and tag your ad links with the UTM link builder so that revenue is attributed properly.
- Copy or share. “Copy results” gives you a plain-text summary. “Copy share link” creates a URL that contains only the numbers you entered: no names, emails or account details.
The key terms
ROAS (return on ad spend)
Revenue from ads divided by ad spend. A ROAS of 4x means ₹4 of revenue for every ₹1 spent. It measures revenue, not profit, so on its own it cannot tell you whether a campaign is worth running.
Break-even ROAS
1 divided by your gross margin. At a 40% margin, break-even ROAS is 1 ÷ 0.40 = 2.5x. Below that, ads cost more than the gross profit they bring in. Above it, they contribute to overheads and profit. This is why there is no single “good ROAS”: the number you need depends on your margin.
CPA (cost per acquisition)
Ad spend divided by the number of orders or conversions. Your maximum affordable CPA is average order value × gross margin, the most you can pay for an order before that order loses money. It ignores repeat purchases, so businesses with strong repeat buying may choose to pay more.
CAC (customer acquisition cost)
What it costs to win one paying customer. In the lead gen tab it is cost per lead ÷ (lead-to-SQL rate × SQL-to-customer rate). That covers media cost only. A full CAC also includes sales salaries, tools and agency fees, which you can fold into your cost per lead if you want the full picture.
Worked examples
The figures below are made up to show the maths. They are not benchmarks or typical results.
An online store checks last month’s ads
Spend ₹50,000, revenue ₹2,00,000, gross margin 40%, average order ₹2,500. ROAS is 4x against a break-even of 2.5x. That is 80 orders at a CPA of ₹625, well under the ₹1,000 maximum. Gross profit after ad spend is ₹30,000, before fixed costs such as salaries, rent and software.
Planning a ₹5,00,000 month
At a ₹2,500 average order you need 200 orders. At a 2% conversion rate that is 10,000 clicks, and at ₹15 per click a ₹1,50,000 budget. A 50/30/10/10 split gives Google Search ₹75,000, Meta ₹45,000, LinkedIn ₹15,000 and other channels ₹15,000. The plan implies a ROAS of 3.33x, so check that against your break-even before committing.
A B2B service business
Leads cost ₹800, 25% become SQLs and 20% of those close, which works out to one customer per 20 leads and a CAC of ₹16,000. That is worth paying if the gross profit from a customer, over the time you are willing to wait for it, comfortably exceeds ₹16,000.
Want help acting on the numbers? See how I approach performance marketing.
FAQ
ROAS and budget questions, answered
What is a good ROAS?
It depends on your margin. A good ROAS is one comfortably above your break-even ROAS, which is 1 divided by your gross margin. At a 50% margin that is 2x; at a 20% margin it is 5x. So the same ROAS can be healthy for one business and loss-making for another. Repeat purchases and lifetime value can also justify accepting a lower ROAS on the first order.
Why is my break-even ROAS so high?
Because your margin is thin. The lower your gross margin, the more revenue each rupee of ads has to bring in just to cover itself. The main levers are raising average order value (bundles, upsells), improving margin, and earning more repeat purchases so each customer is worth more than one order.
Should I use the revenue my ad platform reports?
Use it with care. Each platform attributes sales in its own way, and several platforms can claim credit for the same sale. Where possible, use revenue from your own store, CRM or analytics, and keep the same source every time you compare periods.
Does the currency toggle convert my numbers?
No. It only changes the currency symbol and number formatting (for example lakh-style grouping in INR). Enter all your figures in the currency you actually work in.
Is my data stored or sent anywhere?
No. The calculator runs entirely in your browser and makes no network requests. A share link contains only the numbers you typed in, never names, emails or account details.
Want a second pair of eyes on these numbers?
In a 30-minute strategy session (₹2,999 + GST) we go through your ROAS, budget split and funnel together and agree on what to fix first.
