TikTok & Instagram Reels Ad Spend ROI Calculator
Know before you scale. Calculate true ROI on your short-form video ad campaigns including creative production costs.
Total amount spent on TikTok and/or Instagram Reels campaigns
Total ad impressions across all platforms
Number of clicks that reached your landing page or product page
Number of completed purchases attributed to the ads
Total revenue generated from attributed conversions
Video editing, UGC fees, creative agency costs (optional)
What CPM should I expect on TikTok vs Instagram Reels?
TikTok typically offers lower CPMs ($8-15) compared to Instagram Reels ($12-25). However, CPM varies greatly by niche. Finance, SaaS, and B2B content on TikTok can command $30-80 CPM due to higher advertiser demand for those audiences. Entertainment niches have more supply and lower CPMs.
How do I calculate true ROI on my ad spend?
True ROI accounts for all costs: Ad spend, Creative production costs, Platform fees (if any), Shipping/fulfillment (for physical products), and Time value. Formula: (Revenue - Total Costs) / Total Costs × 100. A 200% ROI means you earned $2 for every $1 spent. Many brands achieve 300-800% ROAS on winning campaigns.
What's a good conversion rate for TikTok/Instagram ads?
Average landing page conversion rates: 0.5-1.5% for cold traffic, 2-4% for warm/retargeted traffic. TikTok typically sees 0.3-1% for e-commerce cold traffic due to younger audience and higher purchase intent variance. Micro-conversions (add to cart, email signup) should be 5-15% to indicate a healthy funnel.
How much should I budget for testing before scaling?
Industry recommendation: Spend $50-100/day per ad set during the testing phase (first 7-14 days). This typically generates enough data to determine winner. Total testing budget should be 10-20x your average order value. If AOV is $50, test with $500-1,000 before scaling a winning ad to $200-500/day.
What engagement metrics indicate a winning creative on short-form video?
Key benchmarks for TikTok/Reels: Watch-through rate > 50% (first 3 seconds), Like rate > 3%, Comment rate > 0.5%, Share rate > 0.3%, Profile visits > 5% of impressions. If creative underperforms on early hooks (first 1-3 seconds), the rest won't matter. Test 3-5 creatives before assuming a product doesn't work.