Know your true ad profitability — ROAS, break-even, and margin in seconds
Campaign Inputs
Total revenue attributed to the ad campaign
All costs for running this campaign
(Revenue − Cost of Goods) ÷ Revenue × 100. Used to compute your true break-even ROAS.
Results
ROAS vs Break-Even
5.00x / breakeven 1.67xThe vertical orange line marks your break-even ROAS.
What-If: ROAS Scenarios at Your Margin
Holding gross margin at 60% — how much ad spend can you afford per $1,000 of revenue to hit each ROAS?
| Target ROAS | Implied Spend / $1k Revenue | Profitable? |
|---|---|---|
| 1.00x | $1,000.00 | No |
| 1.50x | $666.67 | No |
| 2.00x | $500.00 | Yes |
| 1.67xBreak-Even | $600.00 | Yes |
| 4.00x | $250.00 | Yes |
| 5.00x | $200.00 | Yes |
| 8.00x | $125.00 | Yes |
How It Works
ROAS (Return on Ad Spend) tells you how many dollars you earn per dollar spent. But ROAS alone doesn't reveal profitability — that depends on your gross margin.
Disclaimer: Results are estimates for planning purposes. Revenue attribution accuracy varies by ad platform and tracking setup. Gross margin inputs should reflect real unit economics including all variable costs. Consult your finance team before making campaign budget decisions.
The Ad ROAS Calculator tells you exactly how profitable your ad campaigns are. Enter your revenue, ad spend, and gross margin to instantly see your Return on Ad Spend (ROAS), your true break-even ROAS, net profit after advertising costs, and how much headroom you have to scale spend — all calculated from your actual unit economics.
A "good" ROAS depends entirely on your gross margin. A 4x ROAS is profitable for a business with a 30% margin (break-even is 3.33x), but unprofitable for one with a 20% margin (break-even is 5x). Always compare your ROAS to your break-even ROAS, not an industry average.
Break-even ROAS = 1 ÷ Gross Margin. If your gross margin is 60%, your break-even ROAS is 1 ÷ 0.60 = 1.67x. This is the minimum ROAS where your ad spend is fully covered by the profit margin on the revenue those ads generate.
Spend headroom is how much more you could spend on ads and still break even, given your current revenue and margin. It equals your gross profit minus your current ad spend. Positive headroom means room to scale; negative headroom means you are spending beyond what your margin can absorb.
ROAS (Return on Ad Spend) is revenue divided by ad spend — a revenue multiplier. ROMI (Return on Marketing Investment) is the profit earned from that ad spend as a percentage, calculated as (Revenue − Ad Spend) ÷ Ad Spend × 100. ROAS measures revenue efficiency; ROMI measures profit efficiency.