Example data table
| Scenario | Total spend | Net revenue | ROAS | Conversions | CPA | Profit |
|---|---|---|---|---|---|---|
| Starter test | $500.00 | $1,750.00 | 3.50× | 35 | $14.29 | $320.00 |
| Scale phase | $2,000.00 | $9,000.00 | 4.50× | 150 | $13.33 | $1,740.00 |
| Efficiency push | $1,200.00 | $6,000.00 | 5.00× | 90 | $13.33 | $1,510.00 |
Examples are illustrative. Use your own margin and fee assumptions for accuracy.
Formula used
- Net Revenue = Revenue × (1 − Refund Rate).
- ROAS = Net Revenue ÷ Total Spend.
- COGS = Net Revenue × COGS %, or Net Revenue × (1 − Gross Margin %).
- Platform Fees = Net Revenue × Platform Fee %.
- Agency Fee = Total Spend × Agency Fee %.
- Profit = Net Revenue − (Spend + COGS + Fees + Other + Fixed + Agency) − Tax.
- CPA = Total Spend ÷ (Conversions, otherwise Leads).
- Break-even ROAS (simple) ≈ (1 + Agency %) ÷ (Gross Margin % − Fee %).
How to use this calculator
- Select currency, platform, objective, and spend mode.
- Enter your budget and campaign length in days.
- Provide revenue directly, or estimate using conversions and AOV.
- Set refund rate, fees, and margin or COGS percentage.
- Add management, fixed, and other costs for realistic profit.
- Press Calculate to view results above the form.
- Download CSV or PDF to share the report.
Budget inputs that match real media buying
Start by choosing a spend mode that mirrors how your platform bills: total, daily, weekly, or monthly. The calculator converts recurring budgets into a total spend using campaign days, so forecasts stay comparable across tests and scale phases. Keep the same date range you report in analytics, and update the currency to match finance. When budgets shift mid-flight, rerun scenarios to capture the true blended spend. For multi-channel plans, duplicate the scenario and adjust each channel’s spend and revenue, then compare ROAS and profit for allocation decisions each week.
ROAS is strongest when revenue is normalized
Revenue can be entered directly or derived from conversions and average order value. To align ROAS with reality, net revenue reduces gross revenue by the refund or return rate. This is especially useful for subscription trials, high-return apparel, and cash-on-delivery markets. When your tracking uses post-refund revenue, use net revenue here; if your tracking is gross, set refunds to zero for consistency.
Profit view connects margin, fees, and management costs
ROAS alone can hide weak unit economics. The profit estimate subtracts ad spend, cost of goods, platform fees, agency rate, and optional fixed or variable costs. Choose gross margin percent when you know contribution margin, or switch to COGS percent when cost structure is clearer. This lets you compare “high ROAS, low profit” versus “moderate ROAS, strong profit” outcomes using the same assumptions.
Break-even ROAS sets a practical decision line
Break-even ROAS is the minimum multiple needed to cover costs at your current margin and fee settings. The simple version focuses on margin, platform fees, and management rate, while the all-in version also includes fixed and other costs. Use the all-in number for steady-state planning and the simple number for early testing. If your ROAS sits below break-even, reduce costs or improve conversion value.
Sensitivity testing prevents surprises during scaling
The sensitivity table models profit at several ROAS levels so you can see what happens when performance moves by one point. Pair this with traffic diagnostics—CTR, CPC, and CPM—to identify whether efficiency changes are driven by creative, audience, or auction pressure. Before raising budget, confirm that profit remains positive at your conservative ROAS level. This approach reduces the risk of scaling a campaign that looks healthy on revenue alone.
FAQs
1) What does ROAS measure in this calculator?
ROAS is net revenue divided by total ad spend. Net revenue can include a refund adjustment, so the multiple reflects money you actually keep after expected returns.
2) What is the difference between ROAS and ROI here?
ROAS compares revenue to spend. ROI compares profit to spend, after subtracting COGS, fees, management costs, and optional fixed or variable costs.
3) Which revenue method should I use: direct or derived?
Use direct when you have confirmed revenue for the time window. Use derived when you only have conversions and an average order value, such as early tests or lead-to-sale estimates.
4) How should I set margin and platform fee rates?
Use your recent gross margin or COGS percentage from finance reports. Platform fees should include payment processing, marketplace commissions, and any per-order costs that scale with revenue.
5) Why is break-even ROAS useful?
It provides a decision threshold. If actual ROAS exceeds break-even, the campaign can cover costs. If it is below, you need better conversion value, lower costs, or both.
6) Can I export results for reporting?
Yes. After calculating, use the CSV download for spreadsheet analysis or the PDF download for a shareable summary. The sensitivity table is included in the PDF report.