ROAS calculator
Scroll down
Your unit economics
£
£
£
%
£
%
Where you are now
%
x
Ad platforms report revenue inclusive of VAT in the UK, so ROAS is measured against the gross price while your margin is earned on the net. Ignore that and your breakeven ROAS looks about 20% better than it is.
Breakeven ROAS
3.07x
Target ROAS at 15% margin
4.98x
You need at least 3.07x to break even, and 4.98x to hit 15% net margin. Enter your current ROAS to see where you sit.
How that number is built
Sell price£29.99
Less VAT at 20%-£5.00
Net revenue£24.99
Platform or referral fee (15%)-£4.50
Fulfilment-£3.10
Cost of goods and freight-£7.30
Returns provision (5%)-£0.32
Contribution before advertising£9.78
Breakeven ROAS3.07x
Equivalent breakeven ACOS32.6%
Target ROAS at 15% margin4.98x
ROAS and ACOS are the same number expressed two ways: a 3x ROAS is a 33% ACOS. Excludes fixed overhead, storage and any low-inventory fee.
Let's work together
ROAS below breakeven?
If the number above is uncomfortable, that is usually structural rather than a bidding problem. Tell us the category and we will tell you where the margin normally hides.
UK, EU & US Accounts
Direct To The Operator