How to use the ROAS calculator
ROAS compares advertising revenue with advertising cost: revenue attributed to ads รท ad spend ร 100. This calculator is revenue based by default, so the numerator is revenue rather than contribution margin. A ROAS above 100% does not by itself mean the campaign was profitable.
Enter your contribution margin on price and the tool also shows margin-based ROAS and break-even ROAS. Break-even ROAS is 1 รท margin, so a 40% margin needs a 250% ROAS before ad spend is covered.
Ad profit is ad revenue ร margin โ ad spend, so a thin margin can leave a negative profit even at a high ROAS. Keep revenue and spend on the same period and the same reporting basis. Leave the margin field blank and only the revenue-based figures are shown.
Frequently asked questions
Not necessarily. ROAS here is revenue based. If your contribution margin is 20%, break-even ROAS is 500%, so 300% is still a loss. Enter your margin to see it.
Attribution windows and whether refunds are deducted differ between the two. Pick one source, note it, and keep comparing against that same basis.