Signal PPC

E-commerce Profit After Advertising Calculator

Calculate actual profit after contribution margin and advertising spend — not just revenue.

Use the Contribution Margin Calculator if you need to work this out first.

Formula

Profit After Advertising = (Revenue × Contribution Margin) − Advertising Spend

This is the single number that tells you whether a period was actually profitable — revenue alone never does. It still excludes fixed costs like rent, salaries, and software.

Worked Example

$40,000 in revenue at a 45% contribution margin, with $12,000 in ad spend: Profit = ($40,000 × 0.45) − $12,000 = $18,000 − $12,000 = $6,000.

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Calculate contribution margin from price and variable cost per unit — feeds the Break-Even ROAS and Break-Even CPA calculators.