MihsabaHow to use
Calculate ROAS as a multiple and percentage, contribution after ad spend, and an advertising break-even ratio from your entered margin.
- Enter Advertising spend.
- Enter Attributed advertising revenue.
- Enter Contribution margin before ads (%).
- Calculate, then review the results and method assumptions.
How it is calculated
Example
Spend of 500 and attributed revenue of 2,000 give ROAS of 4, or 400%. At a 40% contribution margin, contribution after ads is 300 and ad break-even ROAS is 2.5.
Important notes
ROAS compares revenue with ad spend; it is not net profit. Match currency, period and attribution window. Enter margin after variable costs but before ads; fixed overhead is not deducted here.
Worked examples and interpreting results
Spend of 500 and attributed revenue of 2,000 give ROAS of 4, or 400%. At a 40% contribution margin, contribution after ads is 300 and ad break-even ROAS is 2.5.
| Case | Calculation | Result |
|---|---|---|
| Revenue multiple | 2000 ÷ 500 | 4 |
| Contribution after ads | 2000 × 0.40 − 500 | 300 |
How to check the result
ROAS compares revenue with ad spend; it is not net profit. Match currency, period and attribution window. Enter margin after variable costs but before ads; fixed overhead is not deducted here.
Frequently asked questions
Does ROAS of 4 mean four times the profit?
It means revenue is four times ad spend. Product costs, shipping, fees and other expenses still affect profit.
What if the margin is zero?
ROAS can still be calculated, but zero contribution cannot cover positive ad spend at any finite revenue multiple, so the break-even row is omitted.
Does this convert currencies or import campaign data?
It uses only entered numbers, without import or currency conversion. Align currency, period and metric definitions in your source before entering values.