AdLoopz Profit Planning
Ad Spend Profitability Calculator
Work out how much additional sales and advertising spend you need to reach your profit target — using contribution, not revenue alone.
Build your profit plan
Enter the numbers you already know. Everything recalculates automatically.
$
Average realized price per sale.
$
Product + other variable costs, excluding advertising.
$
Sales you expect without the new ad campaign.
$
$
Expected advertising cost for each incremental customer.
Your profit plan
Contribution / sale
$625
Selling price − variable cost
Contribution margin
41.67%
Contribution ÷ selling price
Baseline profit
$1,250
Before new ad spend
Required extra sales
50
Incremental sales needed
Total monthly sales
100
Required ad spend
$18,750
Extra sales × CAC
Profit after ads
$20,000
Break-even CAC
$625
Maximum CAC before each incremental sale loses contribution
Core formula:
Net Profit =
(Total Sales × Contribution Per Sale)
− Ad Spend − Fixed Costs.
Required incremental sales = (Target Profit − Baseline Profit) ÷ (Contribution Per Sale − CAC).
Required incremental sales = (Target Profit − Baseline Profit) ÷ (Contribution Per Sale − CAC).
Start with your CAC
If customer acquisition cost is the number you know, use it to see how much contribution remains after acquiring each customer.
$
$
$
Ad spend required to acquire one incremental customer.
$
$
Your CAC economics
Contribution / sale
$625
Contribution margin
41.67%
Contribution after CAC
$250
Contribution − CAC
CAC as % of price
25%
Baseline profit
$1,250
Extra sales required
75
Required ad spend
$28,125
Break-even CAC
$625
CAC rule:
Each incremental customer creates
Contribution Per Sale − CAC
of profit contribution before fixed costs.
Break-even CAC = Contribution Per Sale.
Break-even CAC = Contribution Per Sale.
Use your actual ad numbers
Enter what actually happened before and after advertising. The calculator shows the observed change and ad economics.
$
$
$
Baseline sales for the comparison period.
Total sales during the ad period.
$
Actual ad-period economics
Sales change
30
After sales − before sales
Observed CAC
$375
Ad spend ÷ sales change
Ad revenue
$45,000
ROAS
4.00×
Ad revenue ÷ ad spend
Contribution / sale
$625
Contribution from extra sales
$18,750
Ad spend
$11,250
Incremental profit after ads
$7,500
Extra contribution − ad spend
Observed CAC:
Ad Spend ÷ Sales Change.
Incremental Profit After Ads: (Sales Change × Contribution Per Sale) − Ad Spend.
Note: sales change is a comparison, not automatically proof that every additional sale was caused by advertising.
Incremental Profit After Ads: (Sales Change × Contribution Per Sale) − Ad Spend.
Note: sales change is a comparison, not automatically proof that every additional sale was caused by advertising.
Let's build your numbers
You don't need to know your variable cost or fixed costs upfront. Enter the individual costs you know and we'll build them for you.
Start simple.
If you don't have an exact number, enter your best current estimate.
You can replace it later with your actual accounting numbers.
1. What do you sell?
$
2. Costs for each sale
$
$
$
$
%
Example: 2.9% → enter 2.9.
%
3. Monthly fixed costs
$
$
$
$
4. Your advertising goal
$
$
Your numbers, built automatically
Variable cost / sale
$793.50
All entered per-sale costs
Contribution / sale
$706.50
Contribution margin
47.10%
Fixed costs / month
$30,000
Baseline profit
$5,325
Break-even sales
43
Extra sales required
52
Required ad spend
$19,500
Your variable cost =
product/materials + direct labor + fulfillment + other variable costs
+ payment fees + commissions.
Contribution = selling price − variable cost.
Profit after ads = (Total Sales × Contribution) − Ad Spend − Fixed Costs.
Contribution = selling price − variable cost.
Profit after ads = (Total Sales × Contribution) − Ad Spend − Fixed Costs.