MarginKoala

What do my ads leave after direct costs and ad spend?

Enter your numbers below. Get the answer first, then Koala's next move.

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Result detail level
Numbers to enter
Basic mode uses the dollars you know. If you already know the gross margin for the attributed sales, Advanced lets you enter it directly — including a negative margin when those sales are loss-making before ads.
$

Use the same period as the attributed sales below.

$

Use only the sales you are choosing to credit to this ad spend.

$

Direct product or supplier cost attached to the attributed sales. A cost above attributed sales is kept as a loss rather than forced to zero.

Koala's Calculated Result
What the attributed sales leave after the entered product-cost basis and ad spend.

Add ad spend, attributed sales and either the direct product cost or your known gross margin.

MarginKoalaKoala's Professional Opinion

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Frequently asked questions

What does "advertising profit" actually measure?

It measures the revenue-driven contribution your ad spend produces — ad-driven revenue minus ad cost, at your gross margin. The headline figure is whether your ad spend returns more gross profit than it spends, before fixed overhead is layered in.

Advertising Profit

Why does gross margin matter for ad profit?

A $1 of revenue at 80% margin is a very different ad investment than a $1 of revenue at 20% margin. Without the margin input, an ad looks productive by revenue but quietly loses money on every sale. The margin is what turns revenue into a profit read.

Advertising Profit

What if the answer comes back negative?

Your ad spend is losing money at the gross-margin level — every ad-attributed order takes margin away from the business. That is the headline signal to either scale the spend back, fix the conversion funnel, or move to a different channel.

Advertising Profit

Should fixed overhead be included?

No. Ad profit is the gross-margin contribution before fixed costs. The full profit / loss picture subtracts rent, staff and tools on top. Stay at gross margin at this step so the read compares to the ad spend alone.

Advertising Profit

Educational use, not financial advice. Numbers are estimates for planning; consult a qualified professional before acting on them.