Landing Page & Ad Campaign ROI Calculator

Step-by-step guide

1. 1
   Enter your ad spend and traffic
   Enter your monthly ad spend and the number of monthly website visitors that come from that ad spend. Make sure to use the same time period for both: do not mix monthly spend with weekly visitor counts.
2. 2
   Set your conversion rate and order value
   Enter your landing page conversion rate as a percentage (e.g. 3.5 for 3.5%). Enter the average order value or average lead value in the same currency as your ad spend. For lead generation campaigns, use the average value of a qualified lead.
3. 3
   Add COGS and repeat purchase settings
   Enter your cost of goods or service delivery as a percentage of revenue (e.g. 40 for 40%). If you have repeat customers, increase the Lifetime Value Multiplier above 1 to account for the additional revenue from returning customers. Leave COGS at 0 for pure digital products or services with no marginal cost.
4. 4
   Read your live results
   All metrics update as you type. The ROI, ROAS, and Net Profit cards are colour-coded: green for profitable, yellow for marginal, red for loss-making. Review the Break-Even Analysis section to see exactly what conversion rate you need to cover your ad spend.
5. 5
   Explore the What If scenarios
   The Scenario Comparison section shows the impact of a 10% improvement in conversion rate and a 10% increase in average order value alongside your current numbers. Use this to prioritise where to focus optimisation efforts: landing page CRO or pricing/upselling strategy.

Frequently Asked Questions

How is ROI calculated for ad campaigns?

ROI (Return on Investment) for ad campaigns is calculated as: ((Net Profit / Ad Spend) × 100). Net Profit is Gross Profit minus Ad Spend. Gross Profit is Revenue multiplied by (1 − COGS%). Revenue is Conversions multiplied by Average Order Value. A positive ROI means the campaign is generating more profit than it costs to run. A negative ROI means the campaign is losing money.

What is the difference between ROI and ROAS?

ROAS (Return on Ad Spend) is a simpler metric: Revenue / Ad Spend. A ROAS of 4 means you generate $4 in revenue for every $1 spent on ads. ROAS ignores your cost of goods and profit margins. ROI accounts for COGS and gives you a true profitability picture. A campaign with a strong ROAS can still be unprofitable if COGS is high. Always calculate ROI if you are selling physical products or have significant delivery costs.

What is the break-even conversion rate?

The break-even conversion rate is the minimum conversion rate needed for ad revenue to exactly cover ad spend. It is calculated as: (Ad Spend / (Visitors × Order Value)) × 100. If your current conversion rate is below this number, your campaign is losing money. If it is above, the campaign is profitable. The Break-Even Analysis section shows how far your current CVR is from the break-even point.

How should I use the Lifetime Value Multiplier?

If your customers make repeat purchases, the true value of an acquired customer is higher than a single order. Set the LTV Multiplier to account for this: for example, if the average customer buys 3 times over their lifetime, set the multiplier to 3. This will show the LTV-adjusted revenue in the results. Use LTV-adjusted metrics to justify higher CAC (customer acquisition cost) for businesses with strong retention.

What ROAS is considered good?

A commonly cited benchmark is 4:1 ROAS (generating $4 revenue per $1 spent), but the right target depends entirely on your margins. A business with 80% gross margins can be profitable at 2:1 ROAS. A business with 30% gross margins needs 3.5:1 or higher to break even. Use the ROI calculation in this tool rather than ROAS alone: it accounts for your specific margin structure.

Can I use this calculator for lead generation campaigns?

Yes. For lead generation, enter the average value of a qualified lead as the Average Order / Lead Value. Set COGS to 0 unless there is a direct cost associated with each lead conversion. The resulting CPA (Cost Per Acquisition) metric will tell you your cost per lead, which you can compare against your target CPL to assess campaign profitability.