ROAS Calculator

Analyze Return on Ad Spend, break-even thresholds, net profit, and ad budgets

Total Ad Spend ($) Google, Meta, TikTok, etc.

Attributed Revenue ($) Sales generated from ads

Product Gross Margin (%) Average margin before ad costs

Agency / Tooling Fees ($) Management retainers, SaaS

Return on Ad Spend (ROAS)

4.00×

400.0% Return Profitable

Net Profit (after Ad Spend) $7,500 Gross margin minus all costs

Total Ad ROI +136.4% Net profit ÷ Total costs

Break-Even ROAS 1.54× Minimum to avoid losses

Revenue per $1 Spent $4.00 Gross cash generated

Average Profit Margin (%) (Retail Price − COGS) ÷ Retail Price

Processing & Shipping Fees (%) Payment gateway, fulfillment, returns

Target Break-Even ROAS

2.22×

Minimum 222.2% ROAS needed to break even

Net Margin after Fees 45.0% Gross margin minus processing

Max Allowable CPA Share 45.0% Max % of order for ad costs

On a $100 Order (Max CPA) $45.00 Highest ad cost to break even

Required Multiplier 2.22× 1 ÷ Net Margin %

Target Revenue ($) Monthly or campaign goal

Expected / Target ROAS (×) e.g. 3.5 = 350%

Gross Profit Margin (%) Expected product margin

Required Ad Budget

$14,286

Budget needed to generate $50,000 at 3.50× ROAS

Projected Net Profit $15,714 Gross margin minus ad budget

Net Profit Margin 31.4% Net profit ÷ Target revenue

Estimated Total COGS $20,000 Inventory & fulfillment costs

Daily Ad Spend Pace (30d) $476 / day Recommended daily budget