Your ROAS looks good. What do you keep?
Use one matched order cohort. Separate sales, returned product costs and advertising.
Sources and limits
Worked example. Check all costs before using your result.
Your figures
Other costs and assumptions
USD throughout. Your fee schedule, tax treatment and order dates matter. No store connection or upload.
See results ↓What these figures show
Check the marked fields before reading a result.
Read this contribution beside the costs you have not entered.
Contribution after advertising
$1,300.00Conditional on the entered costs. This is not a demand forecast or net-profit report.
- Room for ads before the target
- $3,800.00
- Product sales after refunds
- $9,000.00
- ROAS on sales before refunds
- 4×
- Break-even ROAS on pre-refund sales
- 2.64×
- Ad budget at your contribution target
- $3,300.00
- Ad budget per order at that target
- $33.00
More results and denominators
- ROAS on sales after refunds
- 3.6×
- Contribution divided by net product sales
- 14.44%
- Product gross profit before selling costs
- $5,200.00
- Product gross margin on net sales
- 57.78%
- Product markup on net product cost
- 136.84%
Check every input used
- Product sales after discounts
- 10000 USD
- Orders in this cohort
- 100 whole units
- Product cost of those orders
- 4000 USD
- Advertising spend
- 2500 USD
- Shipping and packing cost
- 1000 USD
- Shipping revenue after matched refunds
- 0 USD
- Actual selling and payment fees
- 300 USD
- Product revenue refunded
- 1000 USD
- Product cost recovered from returns
- 200 USD
- Extra return handling cost
- 100 USD
- Contribution wanted after ads
- 500 USD
Formula, source and limits
Sales after refunds = entered product sales minus matched product refunds. Recovered cost means product cost returned to usable inventory, not a second cash sale.
Contribution before ads = sales after refunds + shipping revenue after matched refunds − product cost + recovered product cost − shipping and packing − actual fees − extra return handling.
Contribution after ads subtracts advertising spend. The target ad budget subtracts your chosen contribution target. A target already missed before ads is unavailable.
Break-even ROAS uses the same pre-refund sales numerator as the displayed gross ROAS, divided by positive contribution before ads. Its two-decimal floor requirement rounds up.
Contribution is not net profit. Tax, overhead, owner pay and unentered costs are excluded. Enter actual fees, including fees on shipping. Match refunds and cost recoveries to the original orders. Ad-platform attribution does not establish that ads caused every sale.