Etsy Ads Calculator
Turn the numbers from your Etsy Ads dashboard into click rate, cost per order, ROAS and ROI.
ROAS and ROI are not the same number
ROAS (return on ad spend) tells you how much revenue each unit of ad spend brought in. It is revenue divided by spend and reads as a multiple. ROI tells you how much you gained on top of what you spent. It is revenue minus spend, divided by spend, and reads as a percentage.
| Ad spend | 50.00 |
|---|---|
| Revenue from ads | 160.00 |
| ROAS: 160 ÷ 50 | 3.2x |
| ROI: (160 - 50) ÷ 50 | 220% |
A ROAS of 1x means the ads brought back exactly what they cost in revenue, which is an ROI of 0%. Anything below 1x is a loss even before Etsy fees and product costs.
What the other numbers tell you
- Click rate (CTR)
- The share of ad views that turned into a click. A low click rate usually points at the first photo, the price or the title.
- Conversion rate
- The share of clicks that became an order. A low conversion rate usually points at the listing itself: photos, description, reviews, shipping cost or delivery time.
- Cost per click and cost per order
- What you pay for one visit and for one order. Compare cost per order with the profit you make on an order in the fee and profit calculator.
- Ad spend share of revenue
- How much of your ad revenue goes back into the ads. If it is higher than your margin before ads, the ads cost more than they earn.
Questions about Etsy Ads
How to read ROAS, ROI and the rest of your ad numbers.
ROAS (return on ad spend) is revenue divided by ad spend and is shown as a multiple: 160 in sales from 50 in ads is 3.2x. ROI is the gain over the cost: (revenue minus spend) divided by spend, shown as a percentage. The same campaign has an ROI of 220%. They are different numbers, so do not compare one with the other.
It depends on your margin. If Etsy fees and your costs take 60% of each sale, you keep 40%, so you need a ROAS above 2.5x (1 divided by 0.40) just to break even on the ads. Work out your margin with the fee and profit calculator first.
In Shop Manager, open Marketing, then Etsy Ads. Pick a date range and copy spend, views, clicks, orders and revenue into the calculator.
No. ROI here is based on revenue, the same way the Etsy Ads dashboard reports sales. To see profit after fees and costs, use the fee and profit calculator and add your ad spend per sale.
Most clicks do not turn into an order. Cost per order is your spend divided by orders, so it equals cost per click divided by your conversion rate.
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