Ad Profitability & Break-Even ROAS Calculator
Estimate clicks, conversions, revenue, and profit after ad spend. Find your break-even ROAS, maximum cost per acquisition (CPA), and maximum cost per click (CPC) using your own numbers.
Campaign assumptions
Estimated campaign results
Break-even limits
More details
Conversions are expected-value estimates and can be fractional. Actual results will vary.
How to use the ad profitability calculator
Enter your planned ad budget, average cost per click, conversion rate, revenue per conversion, and gross margin. Add any additional variable cost per conversion that is not already included in your margin. The calculator models a possible campaign outcome and compares it with the acquisition costs your business can support.
Use real historical campaign data where possible. If you are planning a new campaign, test several realistic CPC and conversion-rate assumptions rather than relying on a single best-case estimate.
What is break-even ROAS?
Return on ad spend (ROAS) is attributed revenue divided by advertising spend. A ROAS of 2.0× means the campaign generates two currency units in tracked revenue for each currency unit spent on ads. ROAS by itself is not profit: product costs, fulfillment, payment fees, refunds, and other variable expenses can make a campaign unprofitable even when revenue is higher than ad spend.
Break-even ROAS estimates the revenue-to-ad-spend ratio needed for contribution after variable costs to cover ad spend. It does not include fixed overhead, taxes, or other expenses unless you include them in your assumptions.
Formulas used
- Estimated clicks = ad spend ÷ average CPC.
- Estimated conversions = estimated clicks × conversion rate as a decimal.
- Projected revenue = estimated conversions × revenue per conversion.
- Contribution per conversion = (revenue per conversion × gross margin) − other variable cost per conversion.
- Estimated profit after ads = (estimated conversions × contribution per conversion) − ad spend.
- ROAS = projected revenue ÷ ad spend.
- Break-even CPA = contribution per conversion, provided the contribution is positive.
- Break-even CPC = contribution per conversion × conversion rate as a decimal.
- Break-even ROAS = revenue per conversion ÷ contribution per conversion, provided the contribution is positive.
Understanding the results
Maximum break-even CPA is the approximate amount you can spend to acquire one conversion before that conversion's contribution is entirely consumed by acquisition cost. Maximum break-even CPC is the approximate click price you can afford at the conversion rate you entered. A real campaign needs room for uncertainty and profit, so operating exactly at break-even leaves no buffer.
If contribution per conversion is zero or negative, the calculator cannot produce a positive break-even CPA, CPC, or ROAS from these assumptions. Review your margin, revenue, and additional costs before increasing ad spend.
Frequently asked questions
Why can ROAS be positive while the campaign loses money?
ROAS measures revenue against advertising cost, not contribution profit. If the amount left after product and other variable costs is too small to cover ad spend, the campaign can lose money despite generating revenue.
Should I include payment or fulfillment fees?
Include them in gross margin or in the additional variable cost field, but do not count the same cost twice. The additional variable cost is intended for costs not already reflected in your margin.
Does this predict actual campaign performance?
No. It is a planning estimate based on the assumptions you enter. Actual performance can differ because of attribution, audience quality, auction prices, conversion tracking, refunds, and changes in the offer or landing page.