What problem does this calculator solve?
Advertisers need to understand how campaign-attributed revenue compares with ad spend and what ROAS is needed to cover the costs in their model.
Large ad-attributed revenue can still be uneconomic when product margins are low. Connect the revenue ratio to your entered contribution margin.
Six practical questions, answered clearly
Find the calculation behind your question. These answers explain how to use the inputs and results when making a decision.
What does a ROAS of 4 mean?
Each euro spent on advertising is associated with four euros of attributed revenue. A ROAS of 4 is equivalent to 400%.
What ROAS makes my online store profitable?
It depends particularly on contribution before advertising. At a 25% pre-ad contribution margin, the modeled break-even ROAS is 4, provided the relevant variable costs are included. Fixed costs still require additional coverage.
How much revenue do I need from a €500 ad budget?
At a target ROAS of 5, you need €2,500 in attributed ad revenue. This is a required amount, not a forecast.
Why can a high-ROAS campaign still lose money?
Product costs, fees, returns, and other expenses may consume too much revenue. A high revenue-to-ad-spend ratio alone does not establish profit.
How can I compare two Google Ads campaigns?
Calculate ROAS for each campaign, then account for different margins, conversion values, and the reliability of revenue attribution.
How do I calculate break-even ROAS?
Divide 1 by the contribution margin expressed as a decimal. A 20% pre-ad contribution margin gives a break-even ROAS of 5.
Worked example
€1,000 attributed revenue and €250 spend produce 4.00× ROAS, or 400%. At a 40% contribution margin, break-even ROAS is 2.50× and contribution after ads is €150.
Formula and calculation method
Calculate using your own assumptions
Enter values in a single currency. Results update as you change inputs. Save up to three scenarios for this session. Copy and CSV export include the assumptions and explanations used.
Practical use cases
- Align campaign targets with product margin.
- Estimate revenue needed for an ad budget.
- Compare cost and margin scenarios.
Assumptions and limitations
No attribution or tracking-data audit. Use net revenue and ad costs from the same period. Break-even covers ads, not all company fixed costs.
FAQ: Using the tool, capabilities, and calculation limits
What does ROAS stand for?
Return on Ad Spend describes attributed advertising revenue divided by advertising cost.
Is ROAS the same metric as ROI?
No. ROI relates return to investment and requires a broader assessment of costs.
Is a ROAS of 300% good?
That depends on contribution margin and the other costs that must be covered. There is no universally good threshold.
Can the calculator help set a target ROAS?
Yes. It calculates the revenue required for a target and supports a margin-based break-even calculation.
Can I compare the ROAS of different campaigns?
Yes. Save multiple scenarios and compare them using consistent attribution and time periods.
How much revenue must my campaign generate to cover ads?
Divide ad cost by contribution margin as a decimal. Fixed costs and profit targets require additional contribution.
Why is ROAS different from ROI?
ROAS compares revenue with advertising cost. ROI evaluates return or profit against invested capital or a defined cost base.
Which margin belongs in break-even ROAS?
Use contribution margin after variable product and selling costs but before ads. Including ads in that margin would count them twice here.
Can I compare campaigns with different attribution windows?
Only with care. Windows, returns, and attribution models can make the same campaign look different. This calculator does not automatically reconcile them.
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