Free performance marketing tool
Calculate the return on ad spend your campaigns need, the most you can afford to pay for a customer or lead, and the conversions required to cover your media budget.
All calculations happen in your browser. No financial information is stored or submitted.
Below this return, gross profit does not fully cover advertising spend.
Planning estimate only. Taxes, agency fees, refunds, repeat purchases and other operating costs are not included.
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Break-even ROAS is the minimum revenue your advertising must generate for gross profit to equal advertising cost.
A business with a 50% gross margin has a break-even ROAS of 2.00×. For every ₹1 spent on advertising, it must generate ₹2 in revenue before advertising spend is covered. This is not necessarily a profitable target because overhead, agency fees and other costs may still remain.
The calculator therefore also applies your chosen safety buffer to create a more conservative target CPA and target ROAS.
1 ÷ gross marginAt a 40% gross margin, break-even ROAS is 1 ÷ 0.40 = 2.50×.
sale value × gross marginThis is the gross profit available to acquire one new customer.
maximum CPA × close rateIf one in five leads becomes a customer, the close rate is 20%.
maximum CPA × (1 − buffer)The safety buffer creates space between break-even and your working target.
The campaign may have room to scale, but first confirm lead quality, conversion tracking and fulfilment capacity.
The campaign covers gross advertising cost but may not leave enough profit after overhead and service fees.
Review targeting, creative, offer, landing-page conversion, sales follow-up and tracking before increasing spend.
Questions, answered
A good ROAS depends on gross margin, repeat purchases, overhead and growth objectives. A 2× ROAS can be profitable for one business and unprofitable for another, which is why your own break-even point matters more than a universal benchmark.
CPA is the advertising cost required to acquire a paying customer. CPL is the advertising cost required to generate a lead. CPL must be considered alongside the percentage of leads that become customers.
For cleaner business analysis, use revenue excluding taxes collected on behalf of the government. Apply the same accounting basis consistently across all inputs.
No. The calculator uses media spend and gross margin. Add agency fees, software, payment charges, refunds and overhead separately when evaluating total profitability.
Yes. The underlying unit economics apply to Google Ads, Meta Ads and other paid channels. Calculate each channel separately when conversion rates or customer values differ significantly.
Verd Media plans, builds and optimises Google Ads, Meta Ads and conversion journeys around qualified leads, sales and measurable business outcomes.