Why a good ROAS can still lose money
Ad platforms report revenue attributed to ads, not the profit left after product costs, shipping, fees and returns. Break-even ROAS depends on pre-ad contribution; a thinner margin requires a higher ROAS.
ADVERTISING / FREE TOOL
ROAS & Break-Even ROAS Calculator
Compare reported ad return with the ROAS needed to cover order-level costs.
Instant calculation No account needed
LIVE RESULT
Actual ROAS
3×Compare reported ad return with the ROAS needed to cover order-level costs.
Contribution before ads₹35,500.00
Pre-ad contribution margin59.17%
Break-even ROAS1.69×
ROAS above / below break-even1.31×
Profit after ads₹15,500.00
THE THINKING BEHIND THE NUMBER
How to use this calculator
Revenue attributed to ads is not always incremental revenue. Use costs associated with that same attributed revenue period.
THE METHOD
ROAS = attributed revenue ÷ ad spend. Break-even ROAS = 1 ÷ pre-ad contribution margin ratio.
A practical example
For illustration, enter ad spend ₹20,000, attributed revenue ₹60,000, cogs ₹18,000, shipping ₹4,000. With the remaining fields at their starting values, the actual roas is 3.00×. Replace these sample figures with your own numbers before making a decision.
How to read your result
If pre-ad contribution is zero or negative, there is no finite break-even ROAS.
Use the result alongside your store analytics, product costs and operating context. If the inputs are estimates, treat the output as an estimate too. Change one input at a time to understand what drives the result.
GO DEEPER
Understand the result before you act
CLEAR ANSWERS
ROAS & Break-Even ROAS Calculator FAQs
How do I use the ROAS & Break-Even ROAS Calculator?+
Enter your own business figures in the labelled fields. The result updates immediately and uses this calculation: ROAS = attributed revenue ÷ ad spend. Break-even ROAS = 1 ÷ pre-ad contribution margin ratio.
What should I keep in mind when reading the result?+
If pre-ad contribution is zero or negative, there is no finite break-even ROAS.
Do I need to create an account to use this tool?+
No. This calculator is free to use without an account. Its numeric inputs are processed in your browser.
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