ROAS calculator
Return on ad spend is attributed revenue divided by what you paid for the media. Add gross margin to see whether that ratio actually clears the cost of the product.
Your inputs
Media plus fees, for the same period as the revenue.
Revenue the ad platform or your model credits to this spend.
Used only for break-even ROAS. Leave a real margin, not 100.
Result
ROAS
4.00x
Contribution after ads
$4,800
Break-even ROAS
2.50x
Questions
How is ROAS calculated?
Return on ad spend is attributed revenue divided by ad spend. A ROAS of 4 means $4 of revenue for each $1 of media.
What ROAS is break-even?
If you enter gross margin, break-even ROAS is 1 divided by that margin. A 40% margin needs a 2.5x ROAS before the ads cover the cost of goods. That still ignores overhead and the people running the account.
Does this include platform fees or agency fees?
Only if you put them in the ad spend box. Add media cost plus management fees if you want the full cost of acquiring that revenue.