Free tool
Unit-economics calculator
The same math we use to plan campaigns. Pick your model, enter your numbers, and see CPA, ROAS, break-even, profit and ROI update live.
Projected results
Visitors
4,167
Sales
104
Revenue
$8,333
CPA
$48
ROAS
1.67×
Break-even ROAS
3.33×
True ROAS
0.52×
Lifetime revenue
$16,667
Profit
-$3,250
ROI
-56.5%
Projections are estimates based on the inputs you provide and standard funnel math; actual results depend on your market, offer and execution.
How it works
What this calculator does
Paid acquisition only makes sense when the money coming out beats the money going in. This calculator turns your traffic, conversion and margin assumptions into the numbers that actually decide that — CPA, ROAS, break-even ROAS, true ROAS, profit and ROI — so you can pressure-test a channel before you spend on it.
It walks a visitor through your funnel step by step: clicks become visitors, visitors convert to sales (or to leads, calls and clients for service funnels), and revenue meets your margin, ad spend and fees. Change any input and every metric recalculates instantly.
How each metric works
- CPA — cost per acquisition
- Total ad spend divided by the number of sales it produced. It answers a single question: what did one paying customer cost you? If CPA climbs above the profit a customer leaves behind, that channel loses money on every order.
- ROAS — return on ad spend
- Revenue divided by ad spend. A ROAS of 3× means every $1 of ads returned $3 of revenue. It is a revenue ratio, not a profit ratio — a healthy ROAS can still hide a loss once product cost, fees and margin are accounted for.
- Break-even ROAS
- The ROAS at which ads exactly pay for themselves, calculated as 1 ÷ profit margin. At a 25% margin you break even at 4× ROAS; anything above that is profit, anything below it is a loss. This is the line every campaign has to clear.
- True ROAS
- ROAS measured against lifetime value instead of first-order revenue. When customers reorder, the real return on acquisition is higher than the first purchase suggests — true ROAS captures that repeat revenue so you don't underspend on channels that build a customer base.
- Profit
- Gross margin on revenue minus ad spend and the management fee. It is the number that actually lands in the bank: revenue × margin − ad spend − fee. A campaign can post a strong ROAS and still show negative profit once thin margins are applied.
- ROI — return on investment
- Profit divided by everything you invested (ad spend plus fee), expressed as a percentage. Where ROAS compares revenue to spend, ROI compares profit to the full cost of running the channel — the cleanest single measure of whether the effort paid off.
Which business model to pick
- E-commerce
- Pick this when a visitor buys directly on the site. The funnel is short — clicks convert straight to orders at your average order value — so the numbers turn on conversion rate, AOV and margin. Best for physical products, DTC brands and online stores.
- Services
- Pick this when a sale takes a conversation — a lead becomes a booked call, and a call closes into a client. It adds lead-to-call and close-rate steps on top of the click, so it fits agencies, contractors, clinics, B2B and any high-ticket offer sold through a pipeline.
- EdTech
- Use the services funnel for course and cohort businesses: a lead signs up, gets a call or webinar, and enrolls. Model the same lead → call → close steps, and lean on lifetime value if students buy more than one program.
Frequently asked questions
- What is a good ROAS?
- There is no universal number — a good ROAS is any ROAS above your break-even ROAS (1 ÷ profit margin). At a 20% margin you need 5× just to break even, while at a 60% margin 2× is already profitable. Always compare ROAS to your own margin, not to an industry rule of thumb.
- Why is my profit negative?
- Profit goes negative when gross margin on the revenue you generated is smaller than ad spend plus the management fee. It usually means CPA is too high for your margin, conversion rate is too low, or average order value doesn't cover acquisition. Lower CPA, raise conversion or AOV, or improve margin until revenue × margin clears your costs.
- What is break-even ROAS?
- Break-even ROAS is the return on ad spend at which a campaign exactly covers its costs, calculated as 1 ÷ profit margin. Below it you lose money on every order; above it you make money. It is the single most useful target to set for a paid channel because it is tied directly to your margin.
- How does the management fee affect ROI?
- The management fee is part of your investment, so it sits in the denominator of ROI (profit ÷ (ad spend + fee)) and is also subtracted from profit. A fee is worth it when the improvement in CPA, conversion and scale it buys adds more profit than the fee costs — the calculator lets you see that trade-off directly by changing the fee field.
- What is the difference between ROAS and ROI?
- ROAS compares revenue to ad spend; ROI compares profit to total investment. ROAS can look great while ROI is negative, because ROAS ignores product cost, margin and fees. Use ROAS to judge a channel's top-line efficiency and ROI to judge whether the channel actually made money.
- Why use lifetime value instead of first-order revenue?
- If customers reorder, first-order revenue understates what acquisition is really worth. Lifetime value (LTV) and true ROAS account for repeat purchases, so channels that bring loyal customers aren't unfairly starved of budget. Use LTV when you have reliable repeat-purchase data; stick to first-order numbers when you don't.