ROAS / ROI Calculator
Calculate ROAS, ROI, CPA, net profit, break-even ROAS, and target sales for ecommerce advertising campaigns.
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Ad return estimate
Calculate ROAS, ROI, net profit, CPA, and the sales needed to break even or reach target profit.
Net profit
$1,356.00
Net margin 19.94%, ROI 113.00%
Current ROAS
5.67
Revenue / ad spend
CPA
$13.95
CPA
Break-even ROAS
2.98
Break-even revenue $3,571.43
Target ROAS
3.91
Target revenue $4,687.50
- Ad revenue
- $6,800.00
- Gross profit
- $2,856.00
- Ad spend
- $1,200.00
- Fixed cost
- $300.00
Calculation Formula
ROAS = ad revenue / ad spend.
Net profit = ad revenue x gross margin rate - ad spend - allocated fixed cost. ROI = net profit / ad spend.
CPA = ad spend / orders.
Break-even revenue = (ad spend + allocated fixed cost) / gross margin rate. Break-even ROAS = break-even revenue / ad spend.
Example: at 40% gross margin, $1,000 ad spend, and no fixed cost, break-even revenue is $2,500 and break-even ROAS is 2.5.
FAQ
What is the difference between ROAS and ROI?
ROAS is ad revenue divided by ad spend and measures revenue efficiency. ROI is net profit divided by ad spend and includes gross margin and fixed costs.
How is break-even ROAS calculated?
Break-even revenue equals (ad spend + allocated fixed cost) divided by gross margin rate. Divide that revenue by ad spend to get break-even ROAS.
What is a simple break-even ROAS example?
With a 40% gross margin, $1,000 ad spend, and no fixed cost, break-even revenue is $2,500 and break-even ROAS is 2.5. Adding $200 of fixed cost raises both to $3,000 and 3.0.
How should CPA be used in campaign decisions?
CPA is ad spend divided by orders. Compare it with contribution profit per order and customer lifetime value to judge whether acquisition is sustainable.