Is your advertising actually profitable? Calculate ROAS, break-even ROAS, max affordable CAC, and run spend scenarios. Free ad ROI calculator.
"We have a 4x ROAS!" sounds great — until you realize your margin is 20%, which means you needed 5x just to break even. ROAS (return on ad spend) only means something next to your break-even ROAS, which comes from your gross margin: divide 100 by your margin percentage. 40% margin → 2.5x break-even. 25% margin → 4x. This calculator puts both numbers side by side, then tells you the truth about whether your ads earn or burn.
Max affordable cost per order = average order value × gross margin. If your ads cost more than that to win a customer, every sale loses money no matter how impressive the ROAS looks. Know this number before you raise any budget.
Your first $500 of ad spend buys the easiest customers — the ones already searching for what you sell. The next $500 reaches colder audiences who convert worse. Expect ROAS to dip as budgets grow; the scenario table above shows what ±20% spend does to your profit so you can scale with your eyes open instead of hoping.
It depends entirely on your margin. A 3x ROAS is fantastic at 50% margin (break-even 2x) and a disaster at 20% margin (break-even 5x). Always compare against your break-even ROAS, not someone else's benchmark.
ROAS measures revenue per dollar of ad spend (4x = $4 back per $1 of ads). ROI measures profit per dollar invested overall. ROAS ignores your product costs; this calculator folds margin in so you see true ad profit.
Don't just spend more — that scales the loss. Fix the funnel first: better targeting, stronger creative, a sharper offer, or a higher average order value. Retest with a small budget and only scale what beats break-even.
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