How is ROAS calculated?

ROAS is calculated as revenue attributed to ads divided by ad spend. A campaign with $20,000 in revenue and $5,000 in ad spend has a 4.0x ROAS.

What is break-even ROAS?

Break-even ROAS is the ROAS needed to cover ad spend and product or service costs before profit. It depends on gross margin, fulfillment cost, fees, and other variable costs.

Is this calculator financial advice?

No. It is a marketing planning tool. It does not replace finance, accounting, tax, platform attribution, or bidding advice.

ROAS Calculator

Runs in your browser No signup Marketing planning only

See whether ad spend is profitable

Use campaign presets or enter your own numbers. The calculator separates ad spend, revenue, gross margin, fulfillment costs, average order value, and conversion rate so you can compare actual ROAS with break-even ROAS.

Current ROAS 0.00x Adjust inputs to calculate campaign performance.

Inputs

Campaign performance

Ad spend Revenue attributed to ads Orders or conversions Conversion rate Visitor to order/lead rate.

Margin and cost

Gross margin before ads Extra variable cost per order Pick/pack, payment fees, call center, fulfillment. Target profit after ads Currency

Budget scenario

Scenario budget Expected ROAS New customer rate 90-day repeat revenue per customer

Results

Return on ad spend 0.00x

Revenue divided by ad spend.

Break-even ROAS 0.00x

ROAS needed before profit.

Profit after ads $0

Contribution after ad spend and variable costs.

Target CPA $0

Max cost per order for target profit.

Scenario revenue $0

Based on scenario budget and expected ROAS.

Campaign breakdown

Optimization checklist

ROAS and break-even formula

ROAS shows revenue generated for each dollar spent on ads. Break-even ROAS adds your margin and variable costs so you can see whether a campaign covers more than media spend.

ROAS = ad-attributed revenue / ad spend

Break-even ROAS = 1 / contribution margin after variable costs

For ecommerce, a campaign can have a high ROAS and still lose money if gross margin, fulfillment, returns, fees, or discounts are not included.

What is a good ROAS?

A good ROAS depends on gross margin, repeat purchase rate, cash flow, and growth goals. A 3x ROAS may be strong for a high-margin product and weak for a low-margin product.

Why is break-even ROAS higher than 1.0x?

A 1.0x ROAS only means revenue equals ad spend. You still need to cover product cost, fulfillment, payment fees, refunds, labor, and any required profit target.

How do I use target CPA?

Target CPA estimates the maximum ad cost per order or lead for your margin and profit goal. Use it as a planning benchmark, then compare it with actual conversion quality and lifetime value.

Can this replace ad platform reporting?

No. Use it to model scenarios. Final reporting should reconcile ad platforms, analytics, ecommerce data, CRM data, and finance records.