Ad spend growth planner

For e-commerce owners with a number in mind. Work back from a revenue or profit goal to the ad budget it takes, or put in a budget and see what it actually earns you once stock, fees and VAT have had their share.

Step 1

Where you are now

A typical month. Rough figures are fine; you can tweak them as you go.

Do you know your current ROAS?

ROAS is return on ad spend: how many pounds of sales each £1 of ads brings in.

Monthly sales

As shown in Shopify (or your platform).

Current average ROAS

Your total sales ÷ total ad spend. Figures from Meta or Google only count the sales they take credit for, so they often run higher.

Average order value

Monthly overheads

Salaries, rent, software, us. Costs that don't move with sales.

My sales figures include VAT Shopify totals and ad platform ROAS usually include the 20% VAT that goes straight to HMRC. Leave this on and we'll strip it out before working out profit.

Step 2

Your margins

As a percentage of sales after VAT. Your quarterly report has these if you're a myQuarterly client.

Stock cost

What the products cost you to buy or make.

Variable costs

Payment and platform fees, shipping out, packaging.

Returns & refunds

Share of sales refunded. We assume returned stock goes back on the shelf.

Expected ROAS on new spend

Usually a bit lower than today's. Your easiest customers are already buying.

Step 3

What are you aiming for?

Pick where you're starting from.

Monthly sales I want to reach

Where the extra money goes

The extra sales each month, and what's left once everyone's been paid.

What if ROAS doesn't play ball?

Returns on ad spend wobble, especially as you scale. Here's the same plan if the extra spend performs better or worse than expected.