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ROI and ROAS of marketing campaigns

Compare the return of each marketing channel: Google, Meta, influencers, email and others. See ROAS, ROI after margin and all costs, the minimum ROAS to avoid losses, the cost per sale and how profit changes when you move budget from the worst channel to the best.

Educational simulation. Not investment advice. Results are estimates based on the data you enter and do not replace advice from a qualified professional.

Reviewed on Oct 31, 2026

Example values for one month. Total cost = media + production, agency and tools for the channel. Revenue = sales attributed to the channel.

Margin

Contribution margin: what is left from each sale after product cost, taxes, fees and commissions. Marketing is paid out of it.

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—Marketing ROI for the month
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ROAS by channel

Revenue generated for every $1 spent. The dashed line is break-even ROAS: below it, the channel loses money.

Tap the chart to see the values.

Profit by channel

Margin on the channel’s sales minus the channel’s cost.

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Channels

The summary lists your inputs, results, formulas, assumptions and sources. The full report also includes the charts and interpretations, in color. In the print dialog, choose Save as PDF.

Method, assumptions and sources

Formulas

ROAS = revenue ÷ channel cost
ROI = (revenue × contribution margin − cost) ÷ cost
Break-even ROAS = 1 ÷ contribution margin
CPA = cost ÷ sales; maximum CPA = average order value × margin

Assumptions and limits

  • Educational simulation. The budget shift assumes each channel keeps its ROAS, which in practice usually falls when spend rises a lot.
  • Attribution: sales that pass through several channels may be counted more than once; use a single attribution model to compare. Results depend on the ad platform’s attribution, which often differs from your own records.

Official sources and references

Frequently asked questions

What is the difference between ROI and ROAS?

ROAS divides the revenue a channel generated by its cost. ROI first deducts product cost by applying the contribution margin, then subtracts the marketing cost and divides by it. ROAS shows sales efficiency; ROI shows whether the channel actually makes money.

What is break-even ROAS?

The minimum ROAS for a channel to pay for itself: 1 ÷ contribution margin. With a 35% margin it is 2.86, meaning you need $2.86 in sales for every $1 of ads just to cover product costs and the ad spend.

How do I read the default example?

The $7,900 spent on four channels generated $33,850 in sales (ROAS of 4.28) and, with a 35% margin, $3,948 of profit: an ROI of 50%. Break-even ROAS is 2.86, and influencers, at 2.25, fall below it. Moving 30% of their budget to email marketing would raise profit by about $1,680 a month, if email kept the same return.

Where do I get each number?

Cost is media spend plus production, agency and tools for the channel. Revenue and sales come from your ad platforms or analytics tool, using the same attribution model for every channel. The contribution margin is what is left from each sale after product cost, payment fees and commissions.

Why do ad platforms report different numbers from my store?

Each platform uses its own attribution window and rules and tends to claim sales that also involved other channels. Add up the sales attributed by all platforms and compare with real sales: the gap shows how much is double-counted.

Should I cut a channel below break-even?

Not necessarily. It may bring in new customers who buy again or help other channels, such as people who discover the brand on social media and later buy through search. Reduce its budget gradually and watch total sales before cutting it.

Does moving budget to the best channel always work?

Rarely in full. Returns usually fall as spend rises, because the platform has to reach less interested audiences. The reallocation on the page is an upper estimate: shift budget in steps and measure the result.

Related calculators

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ROI and ROAS: how to measure campaign returns

ROAS and ROI are the two most used metrics to judge marketing spend. They look similar but answer different questions, and confusing them leads to keeping campaigns that lose money.

ROAS: revenue per dollar of ads

ROAS = revenue attributed to the channel ÷ channel cost. A ROAS of 4 means $4 in sales for every $1 spent. It ignores product cost, so a high ROAS does not guarantee profit.

ROI: profit per dollar invested

ROI = (revenue × contribution margin − cost) ÷ cost. It deducts what the products cost and shows the real return. An ROI of 50% means each dollar spent came back as $1.50 of margin.

Break-even ROAS

The minimum ROAS for a channel to pay for itself is 1 ÷ contribution margin. With a 35% margin, it is 2.86: below that, every sale brought in by the channel costs more than it leaves.

Contribution marginBreak-even ROAS
20%5.00
35%2.86
50%2.00
70%1.43

Beware of attribution

Ad platforms tend to credit themselves with sales that also passed through other channels. Use one attribution model for every channel and, when possible, compare it with your own sales records. Also consider customer lifetime value: a channel below break-even on the first purchase may pay off with repeat purchases.