CalculatorPlus

Australia

Marketing calculators

Return on ad spend is a one-line division, which is why so many calculators for it stop there. The number that actually decides whether a campaign is working is the break-even ROAS implied by your gross margin, and that takes one more input almost nobody asks for.

Why break-even ROAS is the real output

A 3× return on ad spend sounds healthy and can be a loss. If your gross margin is 25 per cent, every dollar of revenue leaves twenty-five cents to cover the ad that produced it, so you need a ROAS of 4 before the campaign contributes anything at all.

Run the same 3× against a 70 per cent margin business and it is comfortably profitable. The ratio on its own tells you nothing until it is compared with the margin behind it, which is why this tool asks for the margin.