Match revenue and spend
Use attributed sales revenue and advertising spend from the same campaign scope and reporting period. Keep the attribution basis consistent when comparing scenarios.
Connect campaigns to contribution
Is my advertising return enough for my margin?
A strong revenue multiple can still leave little contribution. Compare your reported return on ad spend with the break-even level implied by your margin, and see what remains after advertising.
Start the calculatorFree to use. Results after contact details.
IS THIS THE RIGHT TOOL?
For ecommerce teams checking campaign returns against the economics of the products being advertised.
YOUR BUSINESS DECISION
ROAS & Advertising Break-even
Start with your own figures or use the example inputs. Complete the steps, then share contact details to reveal your free result.
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MAKE THE INPUTS USEFUL
Before you begin.
Enter margin before advertising
Use the contribution margin remaining after variable product, fulfilment and selling costs, before ad spend. Enter a percentage of revenue, not markup on cost or a gross margin that omits relevant variable costs.
Check the revenue quality
Use revenue consistent with the sales you intend to count, considering cancellations and returns where relevant. The tool uses your entered revenue; it does not reconcile platform reporting or prove sales were caused by the campaign.
What your result means.
Return on ad spend describes attributed revenue relative to ad spend. Break-even ROAS is the level at which the model's pre-ad contribution covers advertising. Contribution after ads shows the amount left under those assumptions, before fixed overhead and tax. Use all three together when reviewing a campaign.
Observed ROAS beside the margin-based threshold
COMMON QUESTIONS
Understand the decision.
Does a high ROAS mean the ads are profitable?
Not by itself. Compare Return on ad spend with Break-even ROAS, which uses your Pre-ad contribution margin. Contribution after ads shows what remains after advertising in this model; fixed overhead and tax still need to be covered.
Should I use ordered revenue or delivered revenue?
Use one consistent basis and make it clear. If many orders are cancelled or returned, check delivered or retained revenue separately before treating the reported return as money earned.
Why do my ad platform and store report different revenue?
They may use different attribution windows, order dates or rules for counting sales. Compare like-for-like periods and definitions before using the figures together.
Can I increase the budget as soon as I reach break-even?
Reaching the calculated break-even ROAS means the entered pre-ad contribution covers advertising spend, not that a higher budget will perform the same way. Compare Contribution after ads, fulfilment capacity and cash timing, then monitor whether the results hold as spending increases.
FROM PLANNING TO ACTION