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ROAS is not profit. Find your advertising break even.

See the return your agency reports beside the one that matters: what is left after advertising, and the revenue or conversion rate you need to break even.

Your campaign inputs

Use the same reporting period for every figure. Enter revenue that can reasonably be attributed to the campaign.

$
$
%

Revenue minus direct cost of goods or delivery, expressed as a percentage.

Use completed sales or another outcome consistently.

Add this with conversions to compare current and break even conversion rate.

A return number you can interpret

Enter spend, attributed revenue and gross margin. The result separates headline ROAS from advertising break even.

Method and limits

  • ROAS = attributed revenue ÷ ad spend.
  • Break even ROAS = 1 ÷ gross margin rate.
  • Gross contribution after ads = attributed revenue × gross margin − ad spend.
  • Outputs are estimates, not accounting or financial advice. Attribution, refunds, fees, tax, overhead and customer lifetime value can materially change the decision.
Next step

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