Start with ad spend and revenue. Add clicks, conversions or margin only when you have them. MPPM will calculate the core metrics first, then add more context where possible.
Enter your campaign numbers. Free gives the standard result; Pro adds planning tools.
Ad spend and attributed revenue are enough to start.
Start with the result. Open the details only when you need them.
Calculate to see your campaign efficiency.
MPPM will explain what the result means.
Work backwards from the outcome you want.
If the calculation is only one part of a bigger decision, MPPM Professional Services can help structure the targets, channel mix, budget allocation and commercial assumptions around your business.
A high ROAS can still be weak if margins are thin. A lower ROAS can still work if the contribution margin is strong enough.
ROAS tells you how much attributed revenue you generated for each unit of ad spend.
Gross margin helps estimate how much of that revenue is available to cover advertising and other campaign costs.
If actual ROAS is above estimated break-even ROAS, the campaign is more likely to be contributing positively based on the numbers entered.
Every $1 of ad spend generated $3 in attributed revenue.
It does not mean $2 became profit. Margin and other campaign costs still matter.
ROAS is usually easier to understand when you look at it alongside CPA, margin and planning metrics.
Use the related MPPM guides to understand what ROAS means, how it differs from ROI and how the metric fits into a media plan.
There is no single ROAS that is good for every business. A workable target depends on gross margin, operating costs, repeat purchases, customer lifetime value and how much profit the business needs from the campaign.
It can be, but not always. If your gross margin and other costs require a break-even ROAS above 3.00x, the campaign may still lose money. Use the profitability inputs above to estimate the difference.
Break-even ROAS is the approximate revenue-to-ad-spend ratio needed to cover the margin and campaign costs you entered. Above that point, the campaign may be contributing positively. Below it, the entered economics suggest a loss.
Revenue alone does not show how much money is available after the direct cost of what you sold. Gross margin gives the calculator a more useful starting point for estimating profitability.
If you want a more complete campaign-level profitability estimate, include relevant additional costs. If you only want media efficiency, leave the additional campaign cost field at zero.
