Facebook Ads
TikTok Ads
Shopify
Beyond the campaign report
ROAS vs. profit.
What remains after ads?
A good ROAS does not confirm profit. Follow the path from sales to contribution, change the margin and calculate what remains after ads, before fixed costs and taxes.
Try the numbersTHE EXPERIMENT, IN 5 FRAMES
Follow the money.
Preparing frames…
Choose a frame or play the full explanation.
01 / 0501 / Start with the right source
Three different questions.
What does the platform attribute?
ROAS = attributed revenue ÷ ad spend
In this example, conversion value represents revenue. ROAS compares it with spend on the same platform. Check the values you send: they may also be estimated or configured values. Attribution can overlap across channels.
How much did the store sell?
MER = business revenue ÷ ad spend
Here we use the store's net business revenue and total advertising spend for the same period. MER also includes sales from sources other than ads.
What remains after ads?
Contribution = revenue × margin − ad spend
Contribution margin deducts variable costs from revenue before ads. What remains after ads must still cover fixed costs and taxes.
A hypothetical example with a single advertising platform. The platform may attribute RON 30,000 in revenue to RON 10,000 in ad spend: a ROAS of 3×. The store reports RON 40,000 in net commercial revenue, with the same total ad spend of RON 10,000: a MER of 4×. The revenue figures use comparable bases in this example. They come from different sources and must not be added together.
02 / Change the assumption. Read the consequence.
MER and contribution after ads calculator
Start with the example. Then test the margin.
After discounts, returns and cancellations, excluding VAT.
All channels, same period; excluding recoverable VAT.
Revenue remaining after variable costs, before advertising.
+4,000RON
This is what remains for fixed costs and taxes.
- Business MER
- 4×
- Net business revenue ÷ total ad spend
- MER at zero contribution
- 2.86×
- Theoretical threshold, before fixed costs
Platform-attributed revenue is not included in this calculation.
What your result means
Advertising is covered. There are still costs to check.
At a 35% margin, you need RON 28,571.43 in net business revenue to cover RON 10,000 in ad spend.
The revenue entered is RON 11,428.57 above this threshold.
Next check: compare the remaining contribution with all fixed costs and taxes for the period. Only then can you assess net profit.
Mini-lab / Try a decision
You choose what changes.
Choose an assumption and observe its effect. The figures entered above remain your starting point.
+4,000RON
This is your baseline. Try one of the two changes.
What your choice assumes
Net business revenue of RON 40,000, a 35% margin and advertising spend of RON 10,000. No change applied.
RON 40,000 × 35% − RON 10,000 = RON 4,000
These are mathematical comparisons, not forecasts or automatic recommendations. A smaller budget may reduce sales; a higher margin may require changes to prices or costs. Check these effects separately. The model accepts margins between 0% and 100%; if variable costs exceed revenue, a separate analysis is required.
Educational simulation using hypothetical figures, with no account connections. The result is contribution after ads; fixed costs and taxes are excluded.
03 / What to check before deciding
A monthly routine.
Four numbers to reconcile.
If a number does not match its source, start there. The simulator shows how sensitive the outcome is; reconciliation tells you whether the assumptions are real.
- 01
Revenue after adjustments
Start with the store and financial source. Align the period, VAT, returns and cancellations.
- 02
Spend across all channels
Count ad spend once. Keep platform-attributed revenues in a separate report.
- 03
Margin on what actually sold
Include product costs, shipping and fees. The product mix can change the margin even when revenue stays the same.
- 04
Contribution compared with remaining costs
Deduct fixed costs and account for taxes in the full financial calculation. A positive result after ads does not by itself confirm net profit.
Experiment assumptions
The same basis for every calculation.
Net business revenue. Sales after discounts, returns and cancellations, excluding VAT. All values cover the same period; any shipping revenue and associated costs must be treated consistently.
Margin before ads. The percentage of this revenue remaining after product costs, shipping, payment processing and other variable costs. Return adjustments are applied consistently without double deduction.
Advertising spend. Total media spend across all channels for the same period. Variable costs and ad spend exclude recoverable VAT; non-recoverable VAT must be included in costs.
Limits of the result. Contribution after ads excludes fixed costs and taxes and is neither net profit nor cash flow. The calculator does not measure the incremental effect of advertising.
For definitions: Google Ads — conversion values and Shopify — sales reporting and net sales. This calculator defines MER using net business revenue and total ad spend. The assumptions above establish the exact basis of the simulation.
From assumptions to your business
What do your numbers say together?
Let us put revenue, budget and margin in the same conversation.