ROAS Calculator, With the Number That Matters
ROAS is revenue divided by ad spend. Break-even ROAS is 1 divided by your contribution margin, and it is the line between scaling and bleeding. This calculator gives you both, plus the actual profit behind the revenue number.
Revenue attributed to paid campaigns
Platform spend for the same period
Revenue minus COGS, shipping, fees
Your ROAS
5.0
Break-even ROAS
2.5
Contribution Profit
$10,000
Above break-even: every dollar of spend returns profit at these numbers.
Break-Even ROAS by Margin
The same ROAS means opposite things at different margins. That is why blended ROAS hides problems, a pattern we break down in the SaaS paid media budget guide.
| Contribution Margin | Break-Even ROAS | Typical Business |
|---|---|---|
| 80% | 1.25 | Pure software, low-COGS SaaS |
| 60% | 1.67 | SaaS with real hosting or inference costs |
| 40% | 2.50 | Subscription DTC, consumer apps with fees |
| 25% | 4.00 | Physical product DTC after shipping |
Frequently Asked Questions
How do you calculate ROAS?
ROAS = revenue attributed to ads divided by ad spend. $50,000 in tracked revenue on $10,000 of spend is a 5.0 ROAS, sometimes written as 500%. It measures revenue efficiency only; it says nothing about profit until you account for margin.
What is break-even ROAS?
Break-even ROAS = 1 divided by contribution margin. At a 40% margin, break-even is 2.5: below that ROAS you lose money on every conversion even though the dashboard shows revenue. This single number is why two businesses can see the same 3.0 ROAS and one is scaling while the other is quietly bleeding.
What is a good ROAS?
There is no universal good ROAS, only distance from your break-even. A 2.0 ROAS is strong for a 70% margin SaaS (break-even 1.4) and a disaster for a 25% margin DTC brand (break-even 4.0). Judge every campaign against your own break-even plus the profit cushion you need, not against industry averages.
ROAS above break-even but growth still flat?
That usually means the blended number is hiding losers. We find them.
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