ROAS + profit estimator
Turn ROAS into an actionable profit estimate. Add margin, fees, refunds and variable costs to compute break‑even ROAS.
Inputs
Results
ROAS
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Estimated profit
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Break‑even ROAS
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Breakdown
This is a directional estimate. Real profitability depends on attribution, fixed costs and time lag (returns).
How to interpret
ROAS is revenue divided by ad spend. It’s easy to measure — and easy to misuse. A high ROAS can still lose money if your margin is thin or refunds are high.
This calculator converts ROAS into a simple profit estimate by applying:
- Gross margin (your contribution margin before marketing)
- Fees (payment, platform, marketplace)
- Refund/return rate (reduces realized revenue)
- Other variable costs (packaging, pick & pack, etc.)
Break‑even ROAS answers: “What ROAS do I need to not lose money, assuming these costs?” Use it as a sanity check before scaling.
Common mistakes
- Using revenue instead of contribution profit (margin matters).
- Ignoring refunds and chargebacks (especially on impulsive channels).
- Mixing gross and net revenue (including VAT/sales tax inconsistently).
- Comparing channels without aligning attribution windows.
Next step: read the guide Break‑even ROAS explained.