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Seller & Ecommerce
Ad Spend Profit Calculator
Ad Spend Profit. Calculate contribution profit after ad spend from revenue, gross contribution margin and advertising cost.
Formula reviewed September 1, 2026 · Runs locally in your browser
Enter your numbers and calculate.
Worked example
$5,000 revenue at a 55% contribution margin creates $2,750 before advertising. After $1,500 ad spend, $1,250 remains.
What to do with the result
This is more decision-useful than ROAS alone because it forces margin into the same view as ad spend.
Frequently asked questions
Can a campaign have good ROAS and still lose money?
Yes if product, fulfillment, fee and shipping costs leave too little contribution before ads.
Does this include fixed overhead?
No unless you have already included fixed-cost allocation in the contribution margin you enter.