Calculate ROAS, ad profit and break-even ROAS
Basic ROAS divides attributed revenue by advertising spend, but revenue is not profit. This calculator subtracts product or service cost, fulfillment and other variable costs, percentage fees, advertising spend and optional campaign overhead to provide a more useful profit view.
ROAS and ROI formulas
ROAS = ad revenue ÷ ad spend. Net ad profit = revenue − non-ad variable costs − ad spend − campaign overhead. The displayed ROI compares net profit with the entered ad spend and overhead.
Break-even ROAS formula
Contribution margin rate equals revenue left after variable non-ad costs divided by revenue. Break-even ROAS is 1 ÷ contribution margin rate. A 40% contribution margin therefore needs about 2.5x ROAS to cover ad spend before fixed overhead.
Use attribution data carefully
Ad platforms may claim the same sale, miss privacy-restricted conversions or include customers who would have purchased anyway. Compare platform reports with analytics and financial records, and use a target above break-even to allow for refunds, volatility and tracking uncertainty.