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Return on ad spend (ROAS)

A high ROAS does not guarantee profit: what matters is how much of those sales is left after their costs. Check whether your campaign pays for itself and the minimum ROAS you need.

The campaign
€
€
Excluding sales taxes.
Your margin
%
What is left from each sale after product cost, shipping, fees and other variable costs, before advertising.
%
If some of those sales would have happened anyway, lower this percentage.
Campaign result
—
ROAS
—
Break-even ROAS
—
Contribution from sales
—
Sales needed to cover the campaign
—

How it is calculated

  • ROAS = attributed sales ÷ ad spend.
  • Contribution = incremental sales × contribution margin. Result = contribution − ad spend.
  • Break-even ROAS = 1 ÷ contribution margin: below it, the campaign does not pay for itself.

Assumptions

  • The contribution margin already takes out product cost and other variable costs, but not advertising.
  • Incremental sales = attributed sales × share that would not have happened without the campaign.
  • Does not include the value of future purchases by the same customer.
Learn moreROAS: when a campaign makes moneyWhy a high ROAS is not enough and the ROAS you need for your margin.

Learn more about this calculation