ROAS alone is meaningless without your margins. This calculator shows your actual ROAS and the break-even ROAS below which every ad dollar loses money.
It depends entirely on your margins. A 4:1 ROAS is often quoted as healthy, but a store with 25% contribution margin breaks even at 4:1, while a 60% margin store profits at 2:1. Calculate your break-even first.
Break-even ROAS = 1 / contribution margin. If COGS, shipping, and fees consume 47% of revenue, your contribution margin is 53% and break-even ROAS is about 1.9. Below that, ads lose money.
Profit. ROAS ignores your cost structure. Two campaigns with identical ROAS can be profitable and unprofitable depending on product margins. Use break-even ROAS as the floor, then optimize for contribution profit.
Related: Ecommerce Profit Margin Calculator · Amazon FBA Profit Calculator · Landed Cost Calculator (China Imports)
Disclosure: some links on this page are affiliate links. Figures are estimates, not professional advice.