Free advertising economics tool

Break-Even ROAS Calculator

Find the minimum advertising return needed to cover product economics and ad costs before a campaign starts destroying contribution profit.

Simple calculator

Enter the campaign economics

Updates live

Advertising performance

Advertising spend

Attributed gross revenue

Contribution economics

Gross margin

After cost of goods or direct delivery cost. Refund / cancellation leakage

Other variable selling costs

% of realized revenue

Payment fees, commissions, variable fulfillment, etc.

Break-even logicContribution margin on tracked revenue = (1 − refund rate) × (gross margin − other variable-cost rate). Break-even ROAS = 1 ÷ contribution margin. This assumes no additional fixed campaign costs.

Advanced calculator

Build the full advertising contribution model

Contribution-based ROAS

Campaign

Advertising spend

Attributed gross revenue

Average order value

Target campaign contribution

Product economics

Gross margin

Refund / cancellation leakage

Payment processing / transaction fees

% of realized revenue

Other variable selling costs

% of realized revenue

Order & advertising overhead

Variable fulfillment cost / successful order

Agency / management fee

% of ad spend

Fixed creative / tool / campaign cost

Other fixed campaign overhead

Optional downstream value

New-customer share of successful orders

Future contribution credit / new customer

Use only contribution expected beyond the tracked order. Maximum acceptable payback

months

Optional reference only. 0 disables.

Advanced break-even rateThe model converts each $1 of tracked gross revenue into contribution after refunds, gross margin, payment fees, other variable costs and per-order fulfillment. Optional future customer contribution can be added. That contribution must then cover ad spend, agency fees and fixed campaign costs.

Advanced result

Advertising break-even point

Break-even ROAS—Minimum tracked gross revenue / ad spend

Current ROAS——

ROAS required for target contribution——

Contribution / $1 tracked revenue—

Realized revenue after refunds$0

Successful orders0

Contribution before advertising$0

Total advertising-related cost$0

Campaign contribution after ads$0

Break-even tracked revenue$0

Target tracked revenue$0

Maximum base ad spend at current revenue$0

ROAS buffer vs break-even—

Contribution ROI on total ad-related cost—

Future contribution credited$0

Campaign signal—

Gross margin—

Refund rate—

Agency fee—

Target contribution$0

OfficeQ readout

Contribution bridge

Where each advertising revenue dollar goes

Current campaign

Component	Calculation basis	Amount	Share of tracked revenue

Gross-margin sensitivity

Break-even ROAS at different gross margins

Other assumptions held constant

Gross margin	Contribution / $1 revenue	Break-even ROAS	Break-even revenue	Campaign contribution at current revenue

Refund sensitivity

Break-even ROAS as refund leakage changes

Margin and costs held constant

Refund / cancellation rate	Realized revenue	Contribution / $1 tracked revenue	Break-even ROAS	Campaign contribution

Ad-spend sensitivity

Break-even ROAS at different ad budgets

Fixed campaign cost creates scale effects

Base ad spend	Agency fee	Fixed campaign cost	Total ad-related cost	Break-even revenue	Break-even ROAS

ROAS ladder

Campaign contribution at different ROAS levels

Current ad spend and economics

ROAS	Tracked revenue	Contribution before advertising	Total ad-related cost	Campaign contribution	Contribution ROI

Scope

ROAS is not the same as profit or ROI

This calculator treats ROAS as tracked gross advertising revenue divided by base ad spend. It estimates contribution economics from the assumptions entered, but does not resolve attribution accuracy, incrementality, organic cannibalization, taxes, fixed company overhead, working-capital timing or channel-specific attribution windows. Future customer contribution should be used conservatively because uncertain downstream value can make a campaign appear profitable before the cash or contribution is actually realized.