ROAS Calculator, With the Number That Matters
ROAS is revenue divided by ad spend. Break-even ROAS is 1 divided by contribution margin before advertising. Calculate both, plus the contribution remaining after ad spend.
Revenue attributed to paid campaigns
Platform spend for the same period
After variable costs, before ad spend
Your ROAS
5.0
Break-even ROAS
2.5
Contribution Profit
$10,000
Positive contribution after ad spend, before fixed costs.
Use revenue and spend from the same period. Include returns and variable costs in your inputs. This estimate excludes fixed costs and any expenses omitted from your margin. Attributed revenue does not establish how much revenue advertising caused.
Break-Even ROAS by Margin
These illustrative margin scenarios show how much revenue each advertising dollar must return before fixed costs. Use your own costs when planning a paid media budget.
According to Google Ads, ROAS bidding uses conversion value per cost. The value you track and your attribution settings therefore affect the reported result.
| Contribution Margin | Break-Even ROAS | Revenue per $1 of Ads |
|---|---|---|
| 80% | 1.25 | $1.25 |
| 60% | 1.67 | About $1.67 |
| 40% | 2.50 | $2.50 |
| 25% | 4.00 | $4.00 |
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 before advertising. At a 40% margin, break-even is 2.5. Below that level, attributed revenue does not cover the included variable costs and ad spend. Fixed costs and any omitted expenses still need separate consideration.
What is BEROAS?
BEROAS stands for break-even return on ad spend. It is 1 divided by contribution margin before advertising. At a 40% margin, BEROAS is 2.5. This covers included variable costs and advertising, not fixed overhead. The calculator uses the same formula for break-even ROAS.
What is a good ROAS?
A useful ROAS target depends on your costs, attribution and cash requirements. At a hypothetical 70% contribution margin, break-even is about 1.43. At 25%, it is 4.0. Set a target that also covers fixed costs and your required profit. These margins are examples, not industry benchmarks.
ROAS above break-even but growth still flat?
Review your measurement, costs and conversion path with us to choose the next constraint to test.
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