Instagram Ads ROAS Calculator
Ad spend, CPM, CTR, conversion rate, average order value and margin → expected impressions, clicks, orders, revenue, ROAS, cost per order and the break-even ROAS you must beat.
Inputs
Budget for the period you are modelling.
From Ads Manager for your audience. Editable example.
Link click-through rate.
Orders ÷ clicks.
Profit on the selling price before ad spend. Use the margin calculator if unsure.
Result
Projected ROAS
1.44×
₹14,400.00 revenue from ₹10,000.00 spend
Break-even
These are projections from the rates you typed. Real ROAS in Ads Manager depends on how well purchases are reported back to Meta — see the note on the Conversions API below.
What this Instagram ads ROAS calculator does
It walks a budget through the funnel using rates you set: spend and CPM give impressions, CTR gives clicks, conversion rate gives orders, average order value gives revenue. From there it computes ROAS, cost per click, cost per order, and — the part most calculators skip — whether any of it is profitable. Your gross margin turns revenue into gross profit, subtracts the ad spend, and produces the break-even ROAS (1 ÷ margin) and the maximum cost per order you can pay (AOV × margin). Nothing here is a benchmark: every input is yours.
Impressions = Spend ÷ CPM × 1,000 · Clicks = Impressions × CTR · Orders = Clicks × CVR
Revenue = Orders × AOV · ROAS = Revenue ÷ Spend · CPA = Spend ÷ Orders
Break-even ROAS = 1 ÷ Margin · Profit = Revenue × Margin − SpendHow to use it
Pull last campaign's CPM and CTR
From Ads Manager. If you have none, use the editable example values and treat the output as a what-if.
Compute conversion rate from your store
Orders ÷ link clicks for the same period. Be honest — use your own number, not a benchmark; cold traffic usually converts far lower than repeat buyers.
Enter AOV and margin
Average order value from your orders; margin after gateway fees, shipping and expected returns — see the product pricing and COD calculators.
Compare ROAS to break-even
Above it, scale; below it, fix the weakest rate (CTR → creative, CVR → product page and price, AOV → bundles) before spending more.
Worked example
Worked example
Spend ₹10,000, CPM ₹250, CTR 1.5%, conversion rate 2%, AOV ₹1,200, margin 40%. (All editable examples.)
Impressions = 10,000 ÷ 250 × 1,000 = 40,000. Clicks = 40,000 × 1.5% = 600 (CPC ₹16.67). Orders = 600 × 2% = 12 (CPA ₹833.33). Revenue = 12 × 1,200 = ₹14,400. ROAS = 14,400 ÷ 10,000 = 1.44.
Break-even ROAS = 1 ÷ 0.40 = 2.5. Gross profit = 14,400 × 0.40 − 10,000 = 5,760 − 10,000 = −₹4,240. The campaign loses money despite 12 “purchases” in the dashboard. Max CPA at this margin = 1,200 × 0.40 = ₹480; the actual ₹833 is almost double.
Raise conversion rate to 3.5% (21 orders, ₹25,200 revenue): ROAS 2.52, profit +₹80 — just past break-even. Raise AOV to ₹1,500 as well: ROAS 3.15, profit +₹2,600.
Break-even ROAS by margin
| Gross margin | Break-even ROAS | Revenue needed per ₹1,000 of ads |
|---|---|---|
| 20% | 5.0 | ₹5,000 |
| 25% | 4.0 | ₹4,000 |
| 30% | 3.33 | ₹3,333 |
| 40% | 2.5 | ₹2,500 |
| 50% | 2.0 | ₹2,000 |
| 60% | 1.67 | ₹1,667 |
Break-even ROAS = 1 ÷ margin. Thin-margin products need far higher ROAS than most first campaigns deliver.
Make the reported ROAS match reality
The projection above assumes you can see every purchase. In practice a browser Pixel alone misses a share of them — ad blockers, iOS tracking prompts, expired cookies — so Ads Manager shows a lower ROAS than you earned and optimises delivery on incomplete data. The fix is the Meta Conversions API: the store sends a server-side Purchase event from the order record, carrying the same event ID as the Pixel so Meta deduplicates instead of double-counting. SitesPlaced does this on the ₹499 plan with your own Pixel and token; the CAPI guide for small stores explains the setup. Before ads, lock the margin with the profit margin calculator.
Frequently asked questions
What is ROAS?
Return on ad spend: revenue generated by the ads divided by what the ads cost. ₹14,400 of orders from ₹10,000 of spend is a ROAS of 1.44 (or 144%). It says nothing about profit on its own — that needs your margin.
What is break-even ROAS and how is it calculated?
The ROAS at which the gross profit on the orders exactly pays for the ads: 1 ÷ gross margin. At a 40% margin it is 2.5 — every ₹1 of ads must bring ₹2.50 of revenue, because only ₹1 of that is margin. At 25% margin it is 4.0. Any campaign below break-even ROAS loses money even if Ads Manager shows 'purchases'.
Where do I find CPM, CTR and conversion rate?
CPM and link CTR are columns in Meta Ads Manager for any past campaign. Conversion rate is orders ÷ link clicks, which you can compute from your store's orders for the same period. If you have never advertised, use the defaults as editable examples only and replace them after the first ₹2,000 of spend.
Why is the ROAS in Ads Manager different from what my store shows?
Because Meta only counts purchases it can see. Browser-only Pixel events get blocked by ad blockers, iOS privacy settings and cookie expiry, so Ads Manager under-reports and the algorithm optimises on incomplete data. Sending purchases server-side via the Conversions API (CAPI), deduplicated against the Pixel, fixes most of the gap. On SitesPlaced, Meta Pixel + CAPI with server-side Purchase events is included on the ₹499 plan — you bring your own Pixel and access token.
Should I include shipping and COD costs in the margin?
Yes — use the margin you have after every per-order cost (gateway fee, packaging, shipping you absorb, expected RTO loss). The product pricing calculator and the COD vs prepaid calculator give you that number; put it in here as the gross margin.
Put this to work on a free online store
Ads only pay off when Meta sees the purchases. A SitesPlaced store on the ₹499 plan fires your Pixel and sends server-side Purchase events through the Conversions API — deduplicated, from the order record — so the ROAS you optimise on is the ROAS you actually earned.
Open your free store →₹0 to publish, unlimited products, 0% commission. Razorpay, COD, WhatsApp checkout, Shiprocket and Shipmozo included free. ₹499/month (early-bird; ₹999 after the first 30 stores) adds a custom domain, branding removal, AI copy, analytics, Meta Pixel + CAPI and WhatsApp Business API alerts. See pricing.
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