Ad Cost Calculator
Find the maximum advertising cost per order while preserving your target profit.
Result
How to calculate e-commerce ad cost per order
Your sustainable ad budget depends on the profit available from each order. This calculator estimates the maximum advertising cost per order after the other costs included in your inputs and while preserving your target profit.
Start with your selling price
Enter the selling price or expected order value. The calculator adjusts expected revenue for the RTO rate and platform fee you enter.
Include product and fulfillment costs
Product cost, packaging and forward shipping reduce the amount available for advertising.
Account for RTO and payment costs
Expected RTO cost is applied to the RTO share, while the COD or payment fee in this calculator is applied only to delivered orders.
Set a target profit
Your target profit is the amount you want to keep per original order after the included costs and advertising. The maximum ad budget is the amount left after those costs and the target profit.
Why break-even CPA is different
A break-even advertising cost leaves approximately zero profit after the included costs. A sustainable ad budget is lower when you require a positive target profit.
Use the result as a ceiling
Actual ad performance can vary. Keeping real ad spend below the calculated ceiling can provide a safety buffer for changes in conversion rate, RTO, refunds and other costs.
Related tools: Profit Calculator · Break-Even Calculator · RTO Calculator
Frequently asked questions
What is ad cost per order?
Ad cost per order is the advertising spend required to acquire an order. Comparing it with the profit available from that order helps determine whether acquisition is sustainable.
What is a sustainable ad budget?
A sustainable ad budget is an advertising cost per order that still allows the business to achieve its target profit after the other included costs.
Can a low ad cost still be unprofitable?
Yes. A low ad cost can still produce poor profit when product, shipping, RTO, payment or platform costs are high.
Should I use the maximum ad budget as my actual spend?
It is better to treat the calculated amount as a ceiling and keep a safety buffer because actual costs and order outcomes can vary.