ROAS and ROI Calculator — Break-even ROAS
ROAS, ROI, break-even ROAS and profit after ads from spend, revenue and margin
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What you spent on ads in the period.
The conversion revenue reported by the ad platform.
Before ad spend: the share of revenue left after product cost, fees and shipping. Leave empty to get ROAS only.
Some platforms bill VAT or sales tax on top of the ad spend shown in the dashboard. Put spend and revenue on the same basis (both with or both without tax), or ROAS can be off by about 10%.
ROAS and ROI result
Enter ad spend and revenue to get ROAS. Add the margin to also get ROI and the break-even ROAS.
ROAS is revenue per unit of ad spend and ROI is profit per unit of ad spend. The higher your margin, the lower the break-even ROAS. Enter the margin before ad spend. Repeat purchases and brand effects are not included, and platforms differ in how long and how they attribute conversion revenue.
What it is
When a campaign shows a ROAS of 400% it is easy to wonder whether it really makes money. Revenue may be up, but after product cost, fees and shipping the margin may not cover the ads. This ROAS and ROI calculator takes your ad spend, the revenue from the ads and your margin, and returns ROAS, profit after ads and ROI, plus the break-even ROAS and break-even revenue. You can see at a glance whether this spend is profitable and how much you could spend before losing money. Everything is calculated in your browser.
How to use
- Enter the ad spend for the period.
- Enter the revenue the ad platform attributes to the ads.
- Enter your margin before ad spend. Leave it empty to get ROAS only.
- Read ROAS, break-even ROAS, profit, ROI and the break-even verdict.
- Check the formulas below to see how the numbers were reached.
How it works
- ROAS = ad revenue ÷ ad spend × 100 (%).
- Profit before ads = ad revenue × margin and profit after ads = profit before ads − ad spend.
- ROI = profit after ads ÷ ad spend × 100 (%).
- Break-even ROAS = 1 ÷ margin and break-even revenue = ad spend ÷ margin, rounded up.
- The highest spend that still breaks even equals profit before ads.
- The margin runs from 0 to 100%. At 0% there is no break-even value. The break-even check uses exact integer comparison.
- The ROAS and ROI formulas are the usual marketing definitions.
Example
Ad spend 1,000,000, ad revenue 4,000,000 and a 30% margin.
| Item | Calculation | Result |
|---|---|---|
| ROAS | 4,000,000 ÷ 1,000,000 | 400% |
| Break-even ROAS | 1 ÷ 30% | 333.33% |
| Profit before ads | 4,000,000 × 30% | 1,200,000 |
| Profit after ads | 1,200,000 − 1,000,000 | 200,000 |
| ROI | 200,000 ÷ 1,000,000 | 20% |
| Break-even revenue | 1,000,000 ÷ 30% | 3,333,334 |
Common mistakes
Entering a margin that already has ad spend deducted counts the ads twice. Use the margin before ad spend. Judging by ROAS alone is also risky: a product with a 15% margin needs a ROAS above 667% just to break even. Repeat purchases and brand awareness are not part of this calculation, so if the goal is to win new customers you may accept a lower target ROAS.
FAQ
What is the difference between ROAS and ROI?
ROAS is revenue divided by ad spend, and ROI is profit after ads divided by ad spend. A ROAS of 400% means 4 of revenue per 1 spent, but with a low margin the ROI can still be negative.
How is the break-even ROAS calculated?
Break-even ROAS = 1 ÷ margin. A 25% margin gives 400% and 30% gives about 333.33%. Below that ROAS the ads do not pay for themselves. Enter the margin before ad spend, as a share of revenue.
What happens if I leave the margin empty?
The calculator gives only ROAS from spend and revenue and hides ROI and the break-even rows. As soon as you enter a margin it adds profit, ROI and the break-even revenue.
Which revenue should I enter?
The conversion revenue reported by the ad platform. Platforms differ in attribution windows and counting rules, so the same campaign can show different numbers. Compare it with the revenue you actually received.
Why is the break-even revenue rounded up?
Because revenue even one unit below spend divided by margin is a loss. It is rounded up to the smallest currency unit so you see the lowest revenue that reaches break-even.
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