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.
See whether attributed revenue covers your ad spend and variable costs.
Runs on your device · Files stay privateUse figures from the same reporting period, currency and attribution window.
Ad spend, attributed revenue and contribution margin before advertising. Include product costs, fees, shipping subsidies and expected returns in that margin.
Break-even ROAS = 1 / contribution margin. Contribution after ads = revenue × margin − ad spend. Fixed costs and taxes are excluded.
Contribution margin excludes ad spend and fixed costs. This is unit-economics arithmetic, not accounting net profit or a platform bid recommendation.
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.
Enter attributed revenue and ad spend in the same currency and reporting period. Decide how you are handling refunds, discounts and attribution lag.
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.
Calculate and compare actual ROAS with break-even ROAS. Review the contribution-after-ads amount before deciding how much the campaign can support.
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.
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.
Contribution margin excludes ad spend and fixed costs. This is unit-economics arithmetic, not accounting net profit or a platform bid recommendation.
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.
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.