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ROAS + Break-even ROAS Calculator

See whether attributed revenue covers your ad spend and variable costs.

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YOUR CAMPAIGN WORKSPACE
1. ADD YOUR NUMBERS → 2. CALCULATE → 3. EXPORT

Use figures from the same reporting period, currency and attribution window.

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01 / INPUT

What you’ll need

Ad spend, attributed revenue and contribution margin before advertising. Include product costs, fees, shipping subsidies and expected returns in that margin.

02 / METHOD

How it works

Break-even ROAS = 1 / contribution margin. Contribution after ads = revenue × margin − ad spend. Fixed costs and taxes are excluded.

03 / SCOPE

Know the limits

Contribution margin excludes ad spend and fixed costs. This is unit-economics arithmetic, not accounting net profit or a platform bid recommendation.

GET FROM A QUESTION TO A NEXT STEP

Check whether ad-attributed revenue covers its costs

A 3× ROAS can look attractive until you account for the cost of fulfilling the sale. This ROAS calculator combines revenue and spend with the contribution margin left before advertising. Use it when reviewing campaign economics, setting an initial revenue-return target or explaining why the same ROAS can work for one product and lose money for another. The result separates revenue efficiency from contribution after ads.

How to use ROAS + Break-even ROAS Calculator

  1. Enter attributed revenue and ad spend in the same currency and reporting period. Decide how you are handling refunds, discounts and attribution lag.

  2. Enter your contribution margin before ads as a percentage. Include the variable costs relevant to the revenue, such as product costs, fees and shipping subsidies.

  3. Calculate and compare actual ROAS with break-even ROAS. Review the contribution-after-ads amount before deciding how much the campaign can support.

What do the results mean?

ROAS equals revenue divided by ad spend. Break-even ROAS equals one divided by the pre-ad contribution-margin fraction. With a 40% margin, break-even is 2.5×. Contribution after ads still excludes fixed overhead, tax and costs omitted from your margin; it is not accounting net profit.

What to do next

Use Max / Break-even CPC Calculator to translate the same economics into a click-cost ceiling, or model a new spend level with Campaign Forecast Calculator.

Keep the scope in mind

Contribution margin excludes ad spend and fixed costs. This is unit-economics arithmetic, not accounting net profit or a platform bid recommendation.

A LITTLE MORE CLARITY

Common questions about ROAS + Break-even ROAS Calculator

How do you calculate ROAS as a percentage?

Divide attributed revenue by ad spend, then multiply by 100. A 4× ROAS corresponds to 400%. This tool displays the ratio so it remains easy to compare with break-even ROAS.

What is a good ROAS for my campaign?

There is no universal number. Start with your own margin and cost definitions, then consider the contribution required for overhead and other goals. A revenue-return benchmark from another business may not fit your economics.