Facebook Ads ROI Calculator

How to use this Facebook Ads ROI calculator

To calculate your Facebook Ads ROI, select whether or not you have already completed your ad campaign.

• If your campaign is completed, enter your total ad cost, total revenue from the campaign, and any additional costs, such as agency fees.

• If you are planning a campaign in the future, input your target revenue, average revenue per conversion, expected conversion rate, and expected cost-per-click (CPC).

The tool will instantly calculate your current or expected ROI, giving you valuable insights into the success of your Facebook ad campaigns.

Facebook Ads ROI formula

Facebook Ads ROI = [(Total Ad Revenue - Total Ad Cost) / Total Ad Cost] × 100

If the campaign is completed:

Total Ad Cost = Facebook Ad Cost + Additional Costs (e.g., Agency Fees)

For planned campaigns:

Required conversions = Target Revenue / Average Revenue per Conversion

Required clicks = (Required conversions / Expected Conversion Rate) × 100

Total Ad Cost = Required Clicks × Expected CPC

Understanding the Facebook Ads ROI result

• A high Facebook Ads ROI implies that your campaign is highly profitable, indicating strong ad performance and efficient use of your budget.

• A low Facebook Ads ROI can indicate that your ads may need optimization or improvement in targeting. A negative ROI suggests a loss and indicates that you should immediately detect and resolve any issues.

When to calculate Facebook Ads ROI

• After completing a campaign to evaluate success

• Before launching a campaign to predict its potential profitability

• To compare different campaigns, ad sets, or creatives for efficiency

• Before scaling up successful campaigns to maximize return on investment

How to calculate Facebook Ads ROI (with example)

Let’s say you completed a Facebook ad campaign, and your total ad cost was $2,000, your ad revenue was $5,500, and you paid an agency $500 in fees. Your Facebook Ads ROI will be calculated as follows:

Facebook Ads ROI = [(Total Ad Revenue - Total Ad Cost) / Total Ad Cost] × 100

Total Ad Cost = $2,000 + $500 = $2,500

Facebook Ads ROI = [($5,500 - $2,500) / $2,500] × 100 = 120%

This means your Facebook ad campaign generated 120% ROI, which indicates that your revenue was 1.2 times the cost of your campaign.

In a planned campaign scenario, if your target revenue is $10,000, your average revenue per conversion is $500, your conversion rate is 5%, and your expected CPC is $2:

Facebook Ads ROI = [(Total Ad Revenue - Total Ad Cost) / Total Ad Cost] × 100

Required conversions = $10,000 / $500 = 20

Required clicks = (20 / 5) × 100 = 400 clicks

Total Ad Cost = 400 × $2 = $800

Facebook Ads ROI = [($10,000 - $800) / $800] × 100 = 1,150%

In this case, your Facebook Ads ROI is 1,150%, indicating a highly profitable campaign.

How to improve your Facebook Ads ROI

• Optimize audience targeting to focus on the most relevant users

• Enhance your ad creatives with compelling visuals and copy to boost engagement

• A/B test various ad formats to determine which performs best

• Refine your bidding strategy to lower costs without compromising results

• Use remarketing campaigns to re-engage users who have shown interest in your product or service

• Analyze ad performance regularly to make real-time adjustments that maximize ROI