Ads Break-even / ROAS Calculator
Do the campaign economics make sense?
Use your revenue, gross margin, spend and sales assumptions to understand basic advertising economics without confusing revenue with profit.
Advertising economics
This planning estimate uses the gross margin and ad spend entered. It is not complete business net profit and excludes costs such as tax, fulfilment, refunds, agency fees and other operating expenses. Zero spend or zero sales is shown without dividing by zero.
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Methodology
How each figure is calculated.
Revenue = average revenue per sale × sales.
ROAS = revenue ÷ ad spend. CPA = ad spend ÷ sales.
Gross profit before ad spend = revenue × gross margin. Approximate profit after ad spend = gross profit − ad spend.
Break-even CPA = revenue per sale × gross margin. Break-even ROAS = 1 ÷ gross margin expressed as a decimal.
This does not calculate complete net profit. Taxes, fulfilment, refunds, agency fees and other operating costs are not included.