How we worked it out
Updated as you change the numbers.
- ROAS = revenue ÷ spend. Conversion = orders ÷ visitors. Break-even ROAS = 1 ÷ gross margin.
Method and assumptions
At a 40% margin each dollar of revenue earns 40¢ to spend on ads, so you need at least $2.50 of revenue per ad dollar to break even.
Questions
Is a 3.6 ROAS profitable at 40% margin?
Yes: break-even is 2.5, so $2,000 of ads returning $7,200 leaves $880 of gross profit.
Sources
Method and figures checked on . Every worked answer on this page is covered by an automated test. Found a mistake? Tell us.