Context

Calculate your required daily ad budget, target ROAS, orders needed, and break-even CPA for profitable TikTok campaigns.

Many sellers ask, “Is TikTok profitable for my brand?” without a clear method to link ad spend to net profit. A superficial view of revenue ignores TikTok’s 6% commission and a 2.18%+$0.30 transaction fee, plus product cost. This planner solves that by showing how many orders you must generate, how many clicks that requires, and the corresponding daily ad spend. It also calculates the target ROAS (revenue ÷ ad spend) necessary to reach your profit goal.

The Calculator

How It Works

1. Enter your target daily profit.
Decide how much net profit you want each day (after all costs). For example, $100 in net profit after TikTok fees and product costs.

2. Input average order value.
Your recent 30-day AOV from TikTok Shop. If your AOV is $25, net margin after fees is $25 × 30% = $7.50 (assuming a 30% net margin). Adjust if your costs differ, or add a specific “product cost” field to refine margin calculation.

3. Provide average cost per click (CPC).
From TikTok Ads Manager, use the average CPC for your most consistent campaigns. If your CPC is $0.35, enter it here. If CPC fluctuates, use a conservative estimate (e.g., $0.40).

4. Add conversion rate.
Your orders ÷ clicks ratio on TikTok Shop. If 2.5% of clicks turn into orders, enter 2.5.

5. Click “Calculate Budget.”

The tool determines:

• Orders needed to hit your net profit
• Clicks required to generate those orders
• Daily ad spend based on CPC and clicks
• Required ROAS (total revenue ÷ ad spend)

Detailed Breakdown

Net margin per order:
AOV × (1 − TikTok commission − transaction fee) − product cost
Example: A $25 sale × (1 − 6% − 2.18% − $0.30/25) ≈ $7.50 net.

Orders needed = Target daily profit ÷ Net margin per order.
If you want $100/day and net per order is $7.50, you need 14 orders/day.

Clicks required = Orders needed ÷ (Conversion rate/100).
At a 2.5% conversion rate, 14 ÷ 2.5% = 560 clicks.

Daily ad spend = Clicks required × CPC.
If CPC is $0.35, then 560 × $0.35 = $196/day.

Target ROAS = (Orders needed × AOV) ÷ Daily ad spend.
Total revenue = 14 × $25 = $350. Divided by $196 = 1.79× ROAS.

Why Use This Calculator?

Remove guesswork. Rather than throwing $50 at ads hoping for sales, you know you need $196/day to net $100.

Optimize creative and targeting. If your CPC drops by $0.05 or your conversion increases to 3%, reuncover a new scenario in seconds.

Identify performance gaps. If actual ROAS falls below the calculated target, your campaigns are losing money—pause and optimize.

Scale sustainably. When you hit your target ROAS consistently, you can safely increase budget, knowing each additional ad dollar converts to net profit.

How to Gather Accurate Inputs

Average Order Value (AOV): Calculate over a rolling 30-day window. Exclude promotions that temporarily depress AOV, or run a weighted average when seasonality skews numbers.

Cost per Click (CPC): Pull from TikTok Ads Manager for your top-performing campaigns. Use a conservative figure if CPC fluctuates to avoid underestimating spend.

Conversion Rate: Based on orders divided by clicks for each campaign funnel (creator-whitelisted traffic, broad targeting, or livestream sales). If multiple funnels run simultaneously, create separate ROAS scenarios for each.

Target Daily Profit: Decide a realistic net profit goal based on revenue projections and business needs. If $100/day seems unrealistic given your historical metrics, test a smaller goal first (e.g., $50/day) and iterate.

Practical Tips to Improve ROAS

Lower CPC: Test new ad creatives, refine audience targeting (lookalike vs. broad interests), or pause underperforming ads to bring CPC down. Even a $0.05 drop in CPC can save $40 on 800 clicks.

Boost Conversion: Optimize product listing pages by improving descriptions, adding clear CTAs, and featuring user-generated content. A 0.5% increase in conversion from 3% to 3.5% reduces required clicks from 800 to 686 for 24 orders, cutting daily spend by $45.

Increase AOV: Use bundling (e.g., “buy 2 get 1 at 20% off”) to raise average order value. Higher AOV means fewer orders needed for the same profit, reducing ad spend.

Reduce Product Cost: Negotiate with suppliers or shift to private-label products with lower COGS. A $1 reduction in cost per order increases net margin, reducing required order volume.

Account for Fees: If you use TikTok Fulfillment, add its 1–3% add-on fee under “Other Fees.” If your payment processor charges 3% instead of 2.18%, update the transaction fee field accordingly. Accurate fee modeling ensures you don’t overshoot and lose money.

SEO Best Practices for TikTok Calculators

Sellers searching for “tiktok profit calculator,” “tiktok revenue calculator,” or “tiktok calculator” often seek precise tools to estimate profit and ROI. To capture that traffic:

Use “TikTok ROAS planner” and “TikTok profit calculator” in headline and subheadings.

Include long-tail keywords naturally: “tiktok shop revenue calculator,” “tiktok ad budget calculator,” and “tiktok earnings calculator.”

Add a brief FAQ section using queries like “how to calculate tiktok profit” and “is tiktok profitable” to improve search relevance.

Ensure your title tag and meta description reflect these terms. For example:

Title: TikTok ROAS & Ad-Budget Planner – TikTok Profit Calculator
Meta Description: Plan your TikTok Shop ad spend to hit profit goals. This tiktok ad budget calculator factors in fees, cost of goods, and conversion rate to find your target ROAS.

Frequently Asked Questions

Can I save or export my ROAS calculations?
Currently, results appear on the page instantly. To save or export, copy the breakdown or take a screenshot. We plan to add user accounts and export features soon.

What if my CPC fluctuates mid-campaign?
Use a conservative, slightly higher CPC estimate (e.g., +10% above your 30-day average) when running the planner. Recalculate once you have updated data to refine budgets.

Does this planner apply to TikTok Live sales?
Yes. For live events, use the same fee percentages but factor in any promotional costs (giveaways, discounts) as “Other Fees” to ensure accurate net.

How do I check the latest TikTok Shop fee rates?
Commission rates vary by region and category. Log in to your TikTok Shop Seller Center and navigate to “Fees & Commissions” to confirm current percentages. Update this planner accordingly for accurate results.

Can I use this planner for Facebook or Google ad campaigns?
Absolutely. Simply replace TikTok CPC and conversion metrics with your Facebook or Google equivalents. The math and formulas remain the same, making it a universal ad-budget calculator.