Know the ROAS you actually need.
Put in your real costs and this draws the line your ads have to clear, then shows you exactly where today's campaign sits against it.
Your ROAS chart
Every point is a combination of ad spend and ROAS. The line is break-even: above it you make money, below it you burn it.
Keep up to 10 businesses. Each one has its own numbers, months and scenario, and the chart follows the one you pick.
Free keeps one business. Get Pro to keep up to 10, each with its own numbers, months and scenarios.
Per order
Based on the product cost only. Do not subtract shipping, gateway fees or refunds here. Each of those comes off separately below, so including them would count them twice.
Share of your orders refunded, which is the same share of total revenue lost. You lose that order's margin but still pay its shipping and gateway fee. If you have no orders yet, leave it at 0.
Fixed costs per month
Margin / order
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Contribution margin
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Fixed costs
-
How hard to profit
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Break-even ROAS at your ads budget
Break-even ROAS
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Lowest it can ever go
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Fill in the months you have. Each becomes a point on the chart, joined in order. Leave a month blank to skip it. Add a year to keep going. A cost you change in one month is added to the months after it as well, and you can untick any month you want left out.
Business
Year
| Month | Ad spend | ROAS | Profit | That month was different |
|---|---|---|---|---|
| Jan | AED |
x |
- | |
| Feb | AED |
x |
- | |
| Mar | AED |
x |
- | |
| Apr | AED |
x |
- | |
| May | AED |
x |
- | |
| Jun | AED |
x |
- | |
| Jul | AED |
x |
- | |
| Aug | AED |
x |
- | |
| Sep | AED |
x |
- | |
| Oct | AED |
x |
- | |
| Nov | AED |
x |
- | |
| Dec | AED |
x |
- |
VAT is charged on what you pay the ad platforms, so it is treated as a cost of every dirham of spend. It applies to the chart, the months and the scenario alike.
Test a scenario
More spend, better ROAS, a higher average order value, a cheaper courier: see where it lands before you commit.
…or just click anywhere on the chart to drop the point there.
CPP and conversion rate change each set the ROAS on their own. Editing one does not move the other.
Business numbers for this scenario (change these too)
Hover or drag across the chart to read any point
The report is part of Pro. It puts your business numbers, every month you have filled in and this chart into one PDF you can send to a client or a partner. Get Pro for $19 a month.
What makes this the best ROAS calculator online
Most break-even ROAS calculators ask for your costs and one ad spend, then give you one number. It is only true at that budget. This one draws the whole curve, and does a good deal more besides:
- Every ad spend at once. Each point on the chart has its own break-even ROAS. Hover anywhere to read the revenue, orders, cost per purchase and profit or loss at that exact combination.
- Your real months on the line. See which months made money, by how much, and whether you are improving. ROAS can fall while profit rises, and a column of ROAS figures hides that.
- Any ROAS you like, including blended. Enter your blended spend and revenue across every channel and the figure you are plotting is your MER (Marketing Efficiency Ratio), not a single platform's ROAS.
- Three scenarios. Change the budget, the ROAS, the margin, shipping, fees and returns, or even the salaries and the rent, and watch the line and the profit redraw before you commit to anything.
- The mid-month question. Two weeks in, $5,000 spent, holding 5x. What does finishing at $10,000 look like? What about $15,000 at 4.5x, or $20,000 at 4.0x? Put all three up and see which ends the month with more money, rather than the best-looking ROAS.
- Your team, not just you. Up to ten people, each set to view or edit, so whoever spends the budget can see what it is doing to the business.
- Ten businesses, a chart each. For agencies and freelancers carrying clients.
- A report to send. Generate one for a client or a team meeting.
Month tracking, ten businesses and the report come with Pro. Three scenarios, extra years and team access come with Max.
What does this tool show that your ad manager dashboard does not?
Your ads manager knows what you spent and what came back. It does not know what your product costs, what shipping and payment fees take, how many orders are returned, or what your rent and salaries come to, so it cannot tell you whether a campaign made money. This can, because you gave it those numbers.
On top of that it puts your months on one chart so you can see whether you are improving rather than guessing, lets you set years beside each other, and lets you change any number in a scenario to see what it would be worth before you commit to it. You can download the whole thing as a report to go through with your team, or give them access so the people spending the budget can see what their work is doing to the business.
Costs do not stand still either. If your rent went up, or a supplier raised a price, or you took someone on, you can put that month's own figures on the month itself instead of rewriting the top of the form. Any month you do that to is worked out on its own numbers and stays that way, so a change you make today does not quietly restate a quarter you have already closed.
All of it is pointed at one thing: making the decision that earns the most money, rather than the one that makes the dashboard look best. A 3x can beat a 5x. A high ROAS is often a small budget left sitting below what the business could carry, while a lower one spending properly clears the overhead and earns more in total. Your ads manager will always prefer the 5x. Your bank balance may not. Month tracking and the report come with Pro; years, three scenarios and team access come with Max.
Questions about break-even ROAS
What is break-even ROAS?
Break-even ROAS is the return on ad spend at which revenue exactly covers product costs, fees, ad spend and overheads. Below it you lose money, above it you profit. It is not one number: it depends on how much you spend, because fixed costs are spread over whatever revenue you generate.
Why does break-even ROAS change with ad spend?
Rent, software and salaries stay the same whether you spend 10,000 or 20,000 a month. At a low ad spend those fixed costs are spread over a small amount of revenue, so your ad spend has to work harder and break-even ROAS is higher. As spend grows the fixed costs are amortised over more revenue and break-even ROAS falls toward your contribution-margin floor.
How do I calculate break-even ROAS?
Break-even ROAS at a given monthly ad spend = (ad spend + fixed costs) divided by (ad spend × contribution margin %). Contribution margin % is the share of every sale left after cost of goods, shipping, payment processing and returns.
What is the benefit of plotting your ad results on the chart?
Each month you enter becomes a point at the spend and ROAS you actually ran, sitting against the break-even line for that spend. You can see at a glance whether the month made money or lost it, and how far from the line it was. Put several months up and you can compare them and see whether you are improving: ROAS can fall while profit rises, which a column of ROAS figures will never show you. The figure the chart puts against each point is the profit in money, which is what people are reaching for when they talk about profit on ad spend, or POAS.
How do scenarios work, and why plot three of them?
A scenario is a copy of your numbers that you are free to change without touching the real ones. You can change the campaign side, such as the budget, the ROAS or the cost per purchase, or the business side, such as the average order value, the margin, shipping, payment fees, returns or the monthly overhead. The chart redraws with the new break-even line and the new profit, so you can see what a change would be worth before you make it. Plotting three at once lets you compare them against each other and against the months you really ran, which is how you find out which lever moves profit most. Pro plots one scenario and Max plots three.
Know your number. Then go beat it.
Every figure stays in your browser. Nothing is uploaded, stored or sent anywhere. Come back and your numbers will be waiting.