An ad account can look great and still lose money.
The difference is almost always the math behind it: margins, break-even points, and which numbers you trust.
This guide covers every number I use to decide whether ads are paying for themselves.
The short version
- ROAS = revenue from ads ÷ ad spend. A ratio, not profit.
- Break-even ROAS = 1 ÷ contribution margin. Your floor. Below it, every sale loses money.
- A good ROAS is break-even plus the profit you want. Not someone else's number.
- MER = total revenue ÷ total marketing spend. The number no platform can inflate.
- Budget = sales goal × cost per sale, plus testing. Start from the result, not from a comfortable number.
Return on ad spend
- ROAS calculator and formulaFree tool
Calculate ROAS, see it as a percentage, and check it against your margin.
- Break-even ROAS calculatorFree tool
The ROAS and CPA you need to stop losing money.
- What is a good ROAS?
The three ROAS lines every account needs, and what the latest Meta benchmarks show.
- How to increase ROAS on Meta
The ROAS equation and the five levers that move it.
The whole-business view
- What is MER in marketing?
Marketing efficiency ratio, the bank statement test, and when to stop scaling.
- MER calculatorFree tool
MER, break-even MER and profit after marketing in one place.
Costs and budgets
- How much do Facebook ads cost?
CPM, CPC and cost per result, with real benchmarks and why they vary.
- Facebook ad budget calculatorFree tool
A monthly and daily Meta budget from your sales goal, including creative testing.
Counting the sales right
- The Meta Conversions API, explained
Why the Pixel misses sales, and how to close the gap so the numbers above are real.