Calculate Return on Ad Spend for Facebook, Google, TikTok, and any ad platform
Before you ask
It depends entirely on your margin. A store with 60% gross margin can survive at 2x, while one at 25% margin needs closer to 4x just to break even, a single industry benchmark is meaningless without your own numbers.
One divided by your gross margin. At 40% margin your break-even is 2.5x, which means every campaign below 2.5x is losing money regardless of how healthy the click-through rate looks.
Attribution windows count a sale that happened days after a view, and several platforms claim the same sale. Compare platform ROAS against total revenue divided by total ad spend for a figure you can trust.
ROAS suits varied basket values, CPA suits a single price point. Whichever you pick, judge it against contribution margin rather than revenue, or you will scale the campaigns that lose the most money.
Work with our team
We run marketplace, SEO and paid media work for sellers and agencies in the US, UK and the Gulf. Send us the numbers this calculator gave you and we will tell you where the margin is hiding, and what it costs to fix.
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