ROAS Target Calculator.

What is the ROAS Target Calculator?

The ROAS Target Calculator is a quick planning tool that helps you work out the return on ad spend you need to break even and to hit real profit targets.

Input your cost of goods and any variable costs such as shipping or transaction fees, then choose how much profit margin you want to keep after ad spend. The calculator shows the ROAS you need to stay profitable, plus targets for higher profitability levels.

How to set a ROAS Target?

Enter your cost of goods as a percentage of the sale price, plus any extra variable costs per order such as fulfilment, packaging, or payment fees.

The tool calculates your effective product margin after costs and uses that to work out the ROAS you need just to break even on ad spend.

Set a desired profit margin on revenue and see the ROAS required to achieve it, provided it is achievable with your current margin.

Get an instant table of ROAS targets for different profit levels, from break even up to 50 percent profit margin, so you can benchmark what “good” and “excellent” look like for your brand.

Test different margin structures, costs, and profit targets to understand how pricing or cost changes impact the ROAS you need from your marketing.

Why use this tool?

Think in profit, not just ROAS. Tie your targets directly to your cost structure so you know when a ROAS is actually making money.

Pressure test pricing and discounts. See how changes in cost of goods or added fees impact the ROAS required to stay profitable.

Set realistic expectations. Align media performance targets with finance and merchandising based on maths, not guesswork.

Model “what if” scenarios. Explore what ROAS you need if you aim for 10, 20, 30, or 50 percent profit margin after advertising.

Assumptions

All inputs are percentages of sale price. The calculator works on margins, not absolute prices.

Profit margin is net profit after cost of goods, variable costs, and ad spend, expressed as a percentage of revenue.

Product margin is assumed constant. The tool assumes a stable margin across orders and does not account for tiered pricing or volume breaks.

Fixed overheads are excluded. Salaries, rent, and other fixed costs are not included; this is a unit economics view.

Targets above your product margin are impossible. If you ask for a profit margin higher than your underlying product margin, the calculator will flag it as not achievable.