$
The selling price of the product used for this ROI calculation.
$
Your landed product cost per sale.
$
The courier and fulfilment cost attached to each sale.
$
Your current advertising spend divided by the number of sales generated.
$
The monthly cost to manage the advertising account.
Current performance
Estimated ad spend$1,200
Total gross profit$2,700
Total marketing cost$1,900
ROI42.1%
Based on 30 sales, profit after ad spend and management is $800.
What you need for a positive ROI
Minimum sales needed15
Monthly ad spend needed$600
Ad spend per day$20.00
At your current cost per sale, you need at least 15 sales in a 30-day month to cover advertising and account-management costs and move into positive ROI.
Per sale
Gross margin60.0%
Gross profit per sale$90.00
Ad cost per sale$40.00
Contribution after ad cost$50.00
Positive ROI
Your current sales volume covers ad spend and account-management cost.
