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Marketing

ROAS & Break-even Calculator

Ads spending money with nothing to show? Work out your true ROAS and the most you can pay for a lead before it stops being profitable.

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Customers / month30.0
Cost per lead$13
Cost to acquire customer$67
First-month ROAS7.50x
LTV-adjusted ROAS45.00x
Break-even cost per lead$100
Spend more than this per lead and you lose money on the first sale.

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Keep it for later, or forward it to the client. One email, no drip nonsense.

Next step

Model the agency side of that spend

Once the ads work, the money is in what you keep per sub-account. Run your plan, client count and rebilling through the profit calculator.

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ROAS, CAC, and the number most people skip

Return on ad spend tells you what a campaign returned this month. It does not tell you whether the campaign was a good idea. That answer lives in cost to acquire a customer measured against lifetime value, which is why this calculator returns both a first-month ROAS and an LTV-adjusted ROAS.

Break-even cost per lead is the figure to write on a sticky note. It is the most you can pay for a lead before the first sale loses money, and it turns every media-buying decision into a yes or no instead of a debate.

Use it before you pitch a retainer. If a client's numbers cannot support a profitable cost per lead, no amount of creative testing will rescue the account, and knowing that early is worth more than the retainer.

FAQ

ROAS & Break-even Calculator - common questions

ROAS (Return On Ad Spend) is revenue divided by ad spend. If you spend $2,000 on ads and generate $8,000 in revenue, your ROAS is 4x. This calculator gives you both first-month ROAS and LTV-adjusted ROAS once you factor in retention.