ROAS and break-even calculator
Calculate return on ad spend and the revenue needed to break even after refunds, platform fees, and variable costs.
Look beyond ad spend
Use revenue and spend from the same campaign and attribution window. All amounts are in USD.
Total acquisition spend in your chosen period.
Revenue before refunds, store fees, and costs.
What comes out of revenue
Applied to revenue remaining after refunds.
Refunded value as a share of gross revenue.
Share of gross revenue spent on delivery, support, or other variable costs.
The 15% sample fee is an assumption, not a quoted plan. Enter the effective fee for your setup. Exclude sales tax from revenue; add fixed overhead separately when assessing total business profit.
How the threshold works
Break-even ROAS = 1 ÷ contribution margin. The margin retains revenue after refunds and fees, then subtracts variable costs as a share of gross revenue.
Fees and refunds compound: a 3% refund rate with a 15% fee leaves 82.45% of gross revenue before other costs.
Gross return on ad spend
Above break-even2.00×
200% revenue return before costs
Where the revenue goes
- Gross revenue
- $10,000.00
- Refunds
- -$300.00
- Store / payment fees
- -$1,455.00
- Variable costs
- -$1,000.00
- Ad spend
- -$5,000.00
Before fixed overhead and income tax.
You need $6,901.31 in gross revenue to cover $5,000.00 in ad spend at this margin.
Net contribution before ads: $7,245.00. Net ROAS: 1.45×.
ROAS compares attributed conversion value with advertising cost. Google Ads explains conversion value.
How to use this tool
Use one measurement window
Enter spend and attributed gross revenue for the same cohort and time period.
Include revenue deductions
Add refunds, platform fees, and variable costs so the result reflects what you keep.
Check the threshold
Compare actual ROAS with break-even ROAS, then review the contribution left after ad spend.
ROAS measures revenue relative to ad spend
Gross ROAS equals attributed gross revenue divided by advertising spend. A 2× ROAS means two dollars of revenue for each dollar spent. Whether that covers costs depends on how much of the revenue remains after deductions.
Keep attribution and timing consistent
A campaign's first-week revenue is not directly comparable with another campaign's lifetime revenue. Use the same attribution approach and revenue window, and keep fixed overhead separate from the variable costs in this tool.
A few useful details
What happens when ad spend is zero?
ROAS is undefined because its denominator is zero. The tool still shows revenue and contribution where possible, rather than displaying an infinite return.
Does a positive result mean the business is profitable?
The result covers the costs entered here. Fixed overhead, taxes, unrecorded expenses, and acquisition outside the selected campaign can change overall business profit.