Reported ROAS is not profit. It counts revenue at the moment an order is placed, before product costs, shipping, payment fees, returns and everything else. This calculator shows what your Meta Ads actually leave you at the end of the month.
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Why reported ROAS misleads D2C brands
- It counts COD orders that may never be delivered
- It ignores product, shipping, packaging and payment costs
- It ignores agency fees, tools and salaries
- It often includes GST and shipping charged to the customer
Brands regularly celebrate a 3x ROAS while losing money on every order. This calculator exists to stop that.
How to read the results
True ROAS on delivered revenue
What your ads return once undelivered orders are removed. With high COD, this can be far below reported ROAS.
Monthly profit
Delivered revenue minus product costs, fulfilment, payment fees, RTO shipping both ways, ad spend and your other fixed costs.
Profit per delivered order
The cleanest number for decision-making. If it’s negative, scaling makes losses bigger, not smaller.
If your profit is negative
- Raise AOV: bundles, sets and free shipping thresholds
- Improve conversion rate so the same spend brings more orders. See D2C CRO
- Cut RTO: often the single biggest hidden cost. See the RTO cost calculator
- Review pricing and discounts, which quietly eat margin
- Check your break-even ROAS with the break-even calculator
Frequently asked questions
What is true ROAS?
Return on ad spend calculated on revenue actually delivered and paid for, rather than revenue recorded at checkout. It’s the number that matters for cash and profit.
Why is my profit negative at a 3x ROAS?
Because product cost, shipping, fees, returns and fixed costs together can exceed what a 3x ROAS leaves. Whether 3x is good depends entirely on your margins.
Should I include agency and tool costs?
Yes. Put them in “other monthly costs” so the profit figure reflects the real cost of running the channel.
How do I find my RTO percentage?
Divide undelivered or returned-to-origin orders by total shipped orders, tracked separately for COD and prepaid.
Explore more free D2C calculators, or see our Meta Ads service.