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

Total planned advertising spend.

Use your observed or expected cost per click.

Conversions divided by clicks, multiplied by 100.

For example, order value or revenue per lead or sale.

Margin before the extra variable cost below.

Costs not already counted in gross margin.

Set CPC to zero if you do not know it. Break-even limits will still calculate, but campaign projections require a CPC above zero.

Estimates use the inputs above. Change an input or select Calculate results to update the numbers.

Estimated campaign results

$1,125.00 Projected revenue
$81.25 Profit after ad spend
2.25× Estimated ROAS
18.75 Estimated conversions

Break-even limits

1.94× Break-even ROAS
$31.00 Maximum break-even CPA
$0.93 Maximum break-even CPC
2.58% Break-even conversion rate

More details

Estimated clicks: 625.00
Estimated cost per conversion (CPA): $26.67
Contribution per conversion before ads: $31.00
Total contribution before ads: $581.25

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

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.