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ROAS, break-even ROAS and profit calculator

Find out whether a campaign makes money: ROAS, the ROAS you need to break even, contribution margin and profit after ad spend.

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ROAS calculator

Total sold by the campaign in the period.
How much you spent on ads in the same period.
Share of revenue left after product cost, taxes and fees, before ad spend.

Result

ROAS
4.00x
Break-even ROAS
2.50x
Contribution margin
$4,000.00
Profit after ad spend
$1,500.00
Profit on revenue
15.00%
Revenue to break even
$6,250.00
Maximum spend without a loss
$4,000.00
The campaign is above break-even: every dollar invested comes back with profit.

How to calculate campaign ROAS and profit

A high ROAS does not mean profit. A campaign with a ROAS of 3 loses money if the product margin is 25%, and one with a ROAS of 2 can be great at a 70% margin. This calculator combines ad return with your margin to tell you whether the numbers work.

  1. Enter the attributed revenue. Use the sales value the platform or your analytics attributes to the ads in the period.
  2. Enter the ad spend. Add up what was spent on ads in the same period and the same currency.
  3. Enter the contribution margin. It is the share of revenue left after product cost, taxes, shipping and payment fees, before paying for ads.
  4. Read the verdict. Compare ROAS with break-even ROAS. Above it there is profit; below it, a loss. Profit and the revenue needed to break even appear as amounts.

Everything is calculated here, in your browser. Nothing you type is sent to any server and we use no third-party cookies.

How the calculation works

All money is handled in whole cents and rounding uses integer arithmetic, so the result does not suffer from floating-point decimal errors. The margin is handled in hundredths of a percentage point.

Break-even ROAS is the lowest ROAS at which the campaign does not lose money. It depends only on the margin.

  • ROASrevenue ÷ ad spend
  • Break-even ROAS1 ÷ contribution margin
  • Contribution marginrevenue × margin
  • Profit after ad spendrevenue × margin − ad spend
  • Revenue to break evenad spend ÷ margin

Examples

Profitable campaign

Revenue of $10,000, ad spend of $2,500 and a 40% margin. ROAS is 4.00x and break-even is 2.50x. Contribution margin is $4,000 and profit after ad spend is $1,500.

A ROAS that looks good but loses money

Revenue of $9,000, ad spend of $3,000 and a 25% margin. ROAS is 3.00x, but break-even is 4.00x. Contribution margin is $2,250 and the result is a $750 loss.

A high margin tolerates a low ROAS

For a digital product with an 80% margin, break-even ROAS is 1.25x. A campaign at 2.00x already returns $0.60 of profit for every $1.00 invested.

Frequently asked questions

What is ROAS?

ROAS (Return on Ad Spend) is the revenue generated for each unit of currency invested in ads. A ROAS of 4.00x means $4.00 of revenue for every $1.00 spent on ads.

What is break-even ROAS?

It is the minimum ROAS for the campaign not to lose money, calculated as 1 divided by the contribution margin. With a 40% margin it is 2.50x: below that, revenue does not cover product cost and ad spend.

What is the difference between ROAS and ROI?

ROAS compares revenue with ad spend. ROI compares profit with the total invested, including other costs. ROAS ignores product cost, which is why you also need to look at margin.

What goes into the contribution margin?

Revenue minus the costs that vary with each sale: product cost, sales taxes, shipping and payment fees. Fixed costs such as salaries and rent are left out. Ad spend is left out too, because it is what we are evaluating.

What is a good ROAS?

It depends on the margin. There is no universal number: a good ROAS is one that sits above your break-even ROAS with room to cover fixed costs and leave profit.

Why does the math use cents?

Because floating-point decimals accumulate tiny errors, such as 0.1 + 0.2 giving 0.30000000000000004. In whole cents the numbers add up exactly.

Are my numbers sent anywhere?

No. The calculation runs in your browser, the page is configured not to make requests to third parties, and nothing you type is saved.

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