SSkuMath

ROAS Calculator

Is my ad spend actually making money?

Your numbers

Result

Gross profit after ads
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    How this is calculated

    ROAS on its own is meaningless without your margin. This calculator converts ad spend and revenue into gross profit after advertising, and gives you the break-even ROAS that tells you exactly where a campaign stops being profitable.

    Real example: Shopify store ROAS

    Ad spend $2,400, revenue $9,600, AOV $62, contribution margin 41%.

    Result: ROAS 4.0x. Break-even ROAS is 2.44x (100/41). At 4.0x this campaign adds ~$1,984 profit monthly after ads.

    1. ROAS = ad revenue ÷ ad spend
    2. Contribution margin % = 100 − COGS % − other variable cost %
    3. Gross profit from ad revenue = ad revenue × contribution margin %
    4. Break-even ROAS = 100 ÷ contribution margin %
    5. Gross profit after ads = gross profit − ad spend

    What to make of the number

    Break-even ROAS is the most useful number in paid media and most accounts do not calculate it. At a 59% contribution margin, break-even is 1.69 — so a campaign reporting a healthy-looking 2.5x is genuinely profitable, while the same 2.5x at a 35% margin is deeply unprofitable.

    Frequently asked questions

    What is a good ROAS?
    It depends entirely on margin. Break-even ROAS is 100 divided by your contribution margin percentage. Anything above break-even adds profit; anything below destroys it. A 'good' ROAS without that context is not a meaningful target.
    What is the difference between ROAS and POAS?
    ROAS measures revenue per dollar of ad spend. POAS measures gross profit per dollar of ad spend. POAS is the better optimisation target because it accounts for margin, but it requires feeding product-level cost data into the platform.
    Why does my ROAS look fine but the bank balance is falling?
    Usually because the attributed revenue is being counted at full value and the cost of goods, fees, shipping and returns are not. It can also be an attribution window issue, where platforms claim credit for sales that would have happened anyway.
    Should I use last-click attribution?
    Be cautious. Last-click inflates the apparent performance of bottom-funnel campaigns and understates upper-funnel work. Compare platform ROAS against total-store ROAS over the same period to see how much is genuinely incremental.
    How do I use break-even ROAS day to day?
    Set it as the minimum acceptable return in your bidding or as a reporting threshold. Any campaign below it is a candidate for restructuring rather than more budget, regardless of how much revenue it appears to generate.

    Do the research before you commit inventory

    SkuMath shows you the math. Helium 10 supplies the live Amazon data those calculations need as inputs — product demand, keyword volume, competitor reviews and profit tracking.

    Try Helium 10 free

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