What this calculator does

ROAS compares revenue with ad spend, but margin decides whether the return is profitable. This calculator shows both revenue return and contribution after margin.

Formula used

ROAS equals attributed revenue divided by ad spend. Gross profit equals revenue multiplied by gross margin. Contribution subtracts ad spend and extra costs from gross profit.

How to read the result

A campaign can have a positive ROAS and still be unprofitable if margins are low or extra costs are high. Break-even ROAS shows the revenue multiple needed before ad spend is covered by gross profit.

Assumptions

  • Uses attributed revenue as entered.
  • Gross margin is applied before ad spend.
  • Does not model refunds, delayed conversions, incrementality or customer lifetime value.

Sources and checks

This calculator uses a standard public formula. Where rules or thresholds can change, source links are listed on the relevant page.

Frequently asked questions

What is break-even ROAS?

Break-even ROAS is the revenue multiple needed for gross profit to cover ad spend before extra costs. Lower margins need a higher break-even ROAS.