ROAS and target CPA calculator
Use revenue net of refunds and a gross margin before fixed costs to read campaign contribution.
Result
600.00Profit after ads
- ROAS
- 4×
- CPA
- 12.50
- Gross profit
- 1,600.00
- Break-even ROAS
- 2.5×
Inputs
- Ad spend
- 1000
- Attributed revenue
- 4000
- Gross margin
- 40
- Attributed conversions
- 80
How it is calculated
ROAS = revenue ÷ ad spend.
Result
Profit after ads
- ROAS
- 4×
- CPA
- 12.50
- Gross profit
- 1,600.00
How it is calculated
- ROAS = revenue ÷ ad spend.
- CPA = ad spend ÷ conversions.
- Profit after ads = revenue × gross margin − ad spend.
- Break-even ROAS = 1 ÷ gross margin.
Example
1,000 in spend, 4,000 in sales, 40% margin and 80 conversions: 4× ROAS, 12.50 CPA and 600 profit after ads.
Good to know
- Excludes fixed costs, refunds, sales tax and VAT.
- ROAS does not measure profitability without margin.
Frequently asked questions
What is this tool used for?
Use revenue net of refunds and a gross margin before fixed costs to read campaign contribution.
How is the result calculated?
ROAS = revenue ÷ ad spend.
What should I check before using the result?
Excludes fixed costs, refunds, sales tax and VAT.