ROAS Calculator
Calculate return on ad spend, break-even ROAS and contribution after ad spend.
Calculate ROAS and a gross-margin break-even reference
Compare attributed revenue with ad spend and optionally include gross margin for a simplified contribution view.
*Simplified gross-margin model only; excludes overhead, fees, returns, taxes and other costs.
ROAS formula
Return on ad spend is attributed revenue ÷ advertising spend. A 3.00× ROAS means the attribution model assigns three units of revenue for every one unit of ad spend.
What the break-even reference means
In the simplified model used here, break-even ROAS is 1 ÷ gross margin rate. At a 50% gross margin, that reference is 2.00×. This is not a full company break-even analysis because it ignores many costs outside gross margin and advertising.
Why ROAS is not profit
Revenue is not the same as contribution or net income. Product cost, service delivery cost, payment fees, returns, labor, software, overhead and taxes can materially change profitability.
Use one attribution definition when comparing campaigns
Two ad platforms may both claim the same conversion. For decision-making, define the revenue source, attribution model and reporting window before comparing ROAS values.