Facebook Ads break-even calculator

Are Facebook Ads worth it?

Facebook and Instagram ads are worth it when the profit from customers they create is greater than the full campaign cost. Because people may not be actively searching, count qualified leads and paying customers rather than reach or clicks. Use your numbers to set a break-even target before spending.

Check the offer
No sign-up. No email. Nothing saved.
Try your numbersExample values are filled in
Sale price minus the direct cost of doing the work.
Quick result assumes
Your break-even
7

new customers a month

About 19 leads a month at your close rate.

6-month term0-month wait35% close rate$200 kept

$7,800 total cost ÷ $200 kept per customer = 39 customers, spread across 6 active months.

What if your close rate changes?

At 5 out of 20, you need 27 leads a month. At 9 out of 20, you need 15.

Email to myself

The practical view

What are you actually paying for?

Your budget pays to reach selected audiences. Management may cover creative testing, targeting, landing pages, and measurement. Reach is an input, not a business result.

Example: a monthly social ad budget with a separate management fee. Change any number in the calculator to replace the example with your business.

Build the real total

Costs to include

Include media spend, management, creative production, landing pages, tracking tools, and the time spent following up. Count required creative refreshes even when billed separately.

Before you sign

Contract checks

Clarify who owns the account, audience data, creative, and landing pages. Set a test budget and define a qualified lead before launch.

Read the result

What the number means

Reach and clicks can explain what happened, but they do not determine whether the campaign paid back. Use qualified leads, customers, and profit for the decision.

Red flags

  • Success is defined only as reach or engagement
  • No plan to track leads through to customers
  • The vendor keeps control of the account

Questions to ask

  • What action should people take after seeing the ad?
  • How will lead quality be checked?
  • Who owns the creative and account?

How to tell if it is working

Use a dedicated landing page and tagged links, then connect each lead to a sale in a simple monthly tally.

Straight answers

Questions owners ask

PW

Who built this?

Built by Paul Watley

Paul is a Director of SEO. He built this tool to make the financial assumptions behind a marketing pitch visible and testable.

Keep checking the pitch

Running a nonprofit? The nonprofit version is coming separately.