Ad profit calculator for India
Find your break-even ROAS, the most you can pay for a sale, and the ad budget your sales target needs, with GST and payment fees counted in.
Step 1: Can you afford ads?
What each sale leaves you to spend
Include GST if you charge it.
You keep ₹467 per sale before ads.
Step 2: What budget do you need?
Work backwards from your sales target
Link clicks per 100 impressions.
Sales per 100 clicks.
These four are example values. Use your own account's numbers, or see real ad costs from Indian accounts.
Profitable, but below your target: a sale costs ₹417 and your target is ₹367.
An estimate for planning, not tax or financial advice. Results depend on the numbers you enter.
Knowing your numbers is step one. Learn to hit them on real ad accounts.
Performance marketing systems teaches you to plan, run and scale campaigns around numbers like these.
How the calculator works
Nothing hidden. These are the formulas, so you can check them or use them in your own sheet.
What you keep per sale
Price without GST - product cost - shipping - payment feeThis is the money available to pay for ads and profit. If it is zero or negative, ads can't fix it.
The most you can pay per sale
What you keep / (1 + GST on ads you can't claim)Pay more than this per sale and you lose money, however good the ROAS looks.
Break-even ROAS
Price / the most you can pay per saleThe ROAS where profit is exactly zero. It assumes your tracking sends the price the customer pays as the sale value.
Monthly budget
Sales / conversion rate / click rate / 1,000 x CPMWorks backwards from your sales target to the clicks, impressions and spend it takes.
Frequently asked questions
What is a good ROAS in India?
There is no single good number, because it depends on what you keep from each sale. In the example above, the same product breaks even at 2.14x. A product with thinner margins can need 5x or more just to break even, so work out your own number first.
Do I need to count GST on ad spend?
If you are registered and can claim it back, it is usually not a cost, so this calculator leaves it out. If you can't claim it, it is a real cost and the calculator adds it. Check the rate on your ad invoices, and ask your CA about your own case.
Why does the price include GST?
Most tracking setups report the amount the customer paid, so your ad account's ROAS is usually based on that price. If yours reports the price without GST, enter 0 for GST and use your price without GST to compare like with like.
Does this work for leads?
Yes, with one extra step. Work out the most you can pay for a sale, then multiply it by your lead-to-sale rate. If you can pay ₹1,000 per sale and 1 in 10 leads buys, you can pay up to ₹100 per lead.
Does it count repeat customers?
No. It looks at the first sale only, which is the safer way to plan. If customers buy again, use the unit economics calculator to see what that repeat revenue is worth.
Related tools: unit economics · budget allocator
Using this in an article or a course?
You're welcome to. Please credit it like this, with a link:
Piyush Sachdeva, "Ad Profit Calculator for India", Social Masla. https://socialmasla.com/pm/tools/ad-profit-calculator/