The calculation, explained.
Contribution profit = revenue − product costs − fees − ads − other entered costs. ROAS = revenue ÷ ad spend; it is not a profit percentage. Zero ad spend makes ROAS undefined.
Review the example assumptions and results
- Revenue
- 1000 $
- Cost of goods
- 400 $
- Fees
- 50 $
- Ad spend
- 200 $
- Other campaign costs
- 50 $
- Contribution profit
- 300 $
- ROAS
- 5 ×
How this tool works
Adjust the labeled inputs to see a new calculation. Units and assumptions are shown beside each field. Printed and copied results use the same calculation.
Example content is illustrative. Free results do not require signup.
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