How it works
ROAS = attributed revenue / ad spend. Contribution after ads = revenue × contribution margin − ad spend. Break-even ROAS = 1 / contribution margin.
Input definitions
- Revenue attributed to ads
- Enter the value in the labeled unit.
- Advertising spend
- Enter the value in the labeled unit.
- Contribution margin before ad spend (%)
- Enter the value in the labeled unit.
A worked example
- Revenue attributed to ads
- 5000
- Advertising spend
- 1000
- Contribution margin before ad spend (%)
- 40
Assumptions & limits
Planning model using entered costs and policies, not country-specific law or a forecast. Use one currency and consistent time periods.
Sources & review
Maintained by AnsRio. Methods and examples use automated checks; this does not imply independent professional certification.
Method updated 2026-10-17. Content checked against the stated method and examples. Our verification approach.
Common questions
Does a high ROAS prove an advertising campaign is profitable?
No. ROAS compares attributed revenue with ad spend. Product cost, returns, overhead and attribution error can change profit; use the entered contribution margin to inspect break-even.
How does ROAS and advertising break-even work?
ROAS = attributed revenue / ad spend. Contribution after ads = revenue × contribution margin − ad spend. Break-even ROAS = 1 / contribution margin.
What are the limits of ROAS and advertising break-even?
Planning model using entered costs and policies, not country-specific law or a forecast. Use one currency and consistent time periods.