ROAS calculator: is that return actually profit?
ROAS tells you how much revenue each ad dollar brought in. It does not tell you whether the campaign made money. Add your margin and this calculator shows the ROAS you need to break even, and what is left after the ad spend is paid.
Media spend for the campaign or period.
Revenue attributed to the spend. Platform-reported figures tend to run high, so use the most conservative number you trust.
Revenue minus landed COGS, fulfilment, shipping and payment fees. Work it out here.
Every ad dollar brings back A$1.28 of margin. At 3.20x against a 2.50x floor, the campaign clears its spend with A$2,800.00 left.
Profit after ad spend = spend × (ROAS × margin − 1). Computed from your inputs, nothing assumed.
ROAS, the floor, and what is left
ROAS is a revenue ratio. To turn it into a profit answer you need one more number: the share of each revenue dollar left before marketing. That margin sets the break-even floor and converts the return into dollars kept.
The ROAS formula page walks through each line. Use the margin before marketing: gross margin overstates the cushion, and a margin that already includes marketing would count the ad spend twice.
A$32,000.00 of revenue from A$10,000.00 of spend is a ROAS of 3.20x. At a 40% margin, the break-even floor is 1 ÷ 0.40 = 2.50x.
That revenue leaves A$12,800.00 of margin. Pay back the A$10,000.00 of spend and A$2,800.00 remains: a POAS of 1.28, which is the same as 3.20 × 0.40.
These are your live inputs from the calculator above, not a canned example. Change a number up there and these paragraphs follow.
Questions operators ask
Divide the revenue from your ads by what you spent on them. A$32,000 of revenue from A$10,000 of spend is a ROAS of 3.2, often written 3.2x or 320%. It tells you how much revenue each ad dollar returned, not how much profit. For that you need your margin, which is what the break-even line on this calculator adds.
Any ROAS above your break-even ROAS, and there is no universal figure, because the floor is 1 divided by your contribution margin. At a 40% margin it is 2.5x; at 25% it is 4x. A 3x ROAS is profitable for one store and a loss for another. What is a good ROAS works through it, and the break-even ROAS calculator builds the margin from your costs.
ROAS divides revenue by spend. POAS divides the margin on that revenue by spend, so it answers the profit question directly and breaks even at 1.0. The two are linked: POAS is ROAS multiplied by contribution margin. A 3.2x ROAS on a 40% margin is a POAS of 1.28, meaning each ad dollar returns A$1.28 of margin.
Treat it as an upper bound. Each platform counts the conversions it can claim credit for, including some that would have happened anyway, and two platforms can claim the same order. Platform over-claiming explains why. Check it against MER, total revenue divided by total marketing spend, which no single platform can inflate.
Related: Break-even ROASWhich channel is profitable?Who gets the credit?Target MER calculatorAll free tools →
From one campaign ratio to per-channel truth
This page runs one campaign on one blended margin. Blufire S6 Marketing & Channels computes CM1-MER and its decomposition per channel from reconciled orders, and S5 shows how attribution model choice shifts channel credit.