Calculate the minimum return on ad spend required to cover variable costs and reach a desired profit margin.
Enter every cost as a percentage of revenue so the contribution margin is comparable.
Enter gross margin, variable costs and desired profit.
Get a concise summary, a what-if scenario and prioritized next steps based on your result.
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This calculator answers the planning question a basic ROAS report cannot: how much attributed revenue is needed before a campaign covers its variable economics.
Only the share of revenue left after non-ad variable costs can fund acquisition and profit.
Use the <a href="/roas-calculator/">ROAS Calculator</a> to compare current campaign performance with this minimum threshold.
| Gross margin | Other variable costs | Available for ads | Break-even ROAS |
|---|---|---|---|
| 65% | 20% | 45% | 2.22× |
Divide one by the contribution-margin percentage available before advertising. A 25% available margin produces a 4× break-even ROAS.
ROAS reports revenue efficiency, not profit. Lower gross margin leaves less revenue available to pay for advertising.
A refund allowance reduces contribution margin and increases the ROAS required to break even.
No. Platform ROAS depends on attribution, while profitable ROAS also depends on product and operating economics.