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ROAS calculator for your next creative decision

Enter attributed revenue and ad spend for the same period. Then add your contribution margin to see how much remains after advertising. All amounts must use the same currency; this calculator does not convert currencies.

Mike KarrMike Karr · Updated

Use revenue after discounts and refunds, with a consistent attribution window.
Include the media cost that generated that revenue.
Revenue less product, fulfillment, payment and other variable costs, divided by revenue. Exclude ad spend here.
A separate planning scenario; it does not change your actual ROAS.
An assumption for this plan, not a forecast.
A planning allowance, not a statistically validated sample size.

ROAS formula, with a worked example

ROAS = attributed revenue ÷ ad spend. With 4,000 in revenue and 1,000 in spend, ROAS is 4× or 400%. That means four revenue units for each unit spent on advertising. It is not four units of profit.

Formula reference: Google Ads explains conversion value per cost and ROAS percentage.

Calculate the break-even point

Break-even ROAS = 1 ÷ contribution margin expressed as a decimal. At 40% margin, break-even ROAS is 2.5×. In the example above, 4,000 × 40% − 1,000 leaves 600 after media spend, before fixed and omitted costs. At 25% margin, the same 4× ROAS leaves zero. Zero or negative margin cannot cover positive ad spend in this model.

Turn the number into a decision

SituationNext check
ROAS below break-evenVerify tracking, refund-adjusted revenue and variable costs. Review whether the offer and product proof match the audience.
ROAS above break-evenCheck contribution after production and overhead before changing spend. Compare campaigns with the same attribution window.
Strong clicks, weak purchasesReview landing-page continuity, price, delivery terms and checkout. A new hook alone may not solve the gap.
A proposed creative testBudget per variant = assumed CPA × planned acquisitions. Whole variants = test budget ÷ budget per variant, rounded down.

Plan a small video creative test

  1. Choose one hypothesis: a product demonstration, an objection or a specific use case. Keep the offer and audience consistent so the comparison has meaning.
  2. Use the planning inputs to estimate how many variants the budget could support. For example, 600 ÷ (20 CPA × 10 acquisitions) = 3 variants. This is a budget illustration, not proof of sufficient evidence.
  3. Build original scripts and videos with Kreopatra's ready UGC/avatar templates. Test different openings around the same product proof, then record the spend, purchases and revenue for each variant.
  4. Wait for the chosen attribution window to mature. Review contribution, uncertainty and conversion volume before deciding whether to pause, revise or expand a test.

Turn your next test hypothesis into original creator-style video ads with Kreopatra's ready UGC/avatar templates.

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ROAS calculator FAQ

What is a good ROAS?

There is no universal number. Your contribution margin, creative costs, overhead and measurement window determine whether the return is sufficient. Start with your own break-even calculation.

Is ROAS the same as ROI?

No. ROAS divides attributed revenue by advertising spend. ROI compares profit with the relevant total investment; the answer depends on which costs you include.

Can I use blended revenue?

Yes, but label it consistently. Total revenue divided by total ad spend is a blended measure often called MER. Do not compare it directly with a single platform's attributed ROAS.

Does a higher ROAS prove a better creative?

No. Audience mix, attribution, placement and spend can change the result. Use comparable tests and sufficient evidence; this calculator does not estimate statistical significance.

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