Calculate your Return on Ad Spend per channel and blended, and see it against your own break-even ROAS, the only benchmark that decides whether your ads make money.
Revenue minus cost of goods, shipping, payment fees and returns, as a share of revenue.
You keep margin after paying for the ads. Shift budget toward the channels furthest above break-even.
This calculation is automated by
Polar Bear
Arktis matches each order to the ad click that produced it and reports ROAS per campaign from real orders, not platform-reported conversions. Meta spend syncs automatically, spend for other platforms can be entered by hand, and your cost of goods, shipping and fees turn it into profit.
Start 7-day free trialBlended ROAS can be misleading. If you spend $1,000 on Facebook (4x ROAS) and $1,000 on Google (2x ROAS), your blended ROAS is 3x. But that hides the fact that Facebook is twice as efficient. Without per-channel breakdowns, you might split budget 50/50 when you should be shifting toward the winner.
A 3x ROAS is a healthy return for a store keeping 50 percent of each sale, and a loss for one keeping 25 percent. Break-even ROAS is 1 divided by your contribution margin, so the same number means opposite things for different businesses. Industry averages hide that, which is why this calculator compares you with your own break-even instead.
Ad platforms can each take credit for the same conversion. Take a customer who sees a Facebook ad, later searches your brand on Google and buys: both platforms may count that one order in their own ROAS. Matching each order to the ad click that preceded it, which is what Arktis does, counts the sale once.
ROAS (Return on Ad Spend) measures the revenue generated for every dollar spent on advertising. A ROAS of 4x means $4 of revenue for every $1 of ad spend. It says nothing about profit until you set it against your margin.
One comfortably above your own break-even ROAS, which is 1 divided by your contribution margin. At a 40 percent margin you need 2.5x just to cover the ads; at 25 percent you need 4x. That is why this calculator asks for your margin instead of comparing you with an industry average.
Revenue minus the costs that grow with each order, such as cost of goods, shipping, payment fees and returns, as a share of revenue. It is what an order leaves you to pay for the ad that won it.
ROAS measures revenue per ad dollar (revenue divided by ad spend). ROI measures profit relative to cost, so it has to subtract cost of goods and other costs as well as the ads. A high ROAS on a low-margin product can still lose money.
Each ad platform counts the conversions it can claim under its own attribution settings, so two platforms can both claim the same order, and view-through or modelled conversions can add more. Matching each order to the ad click that preceded it counts every sale once.
Yes, from real orders. Arktis captures the ad click identifier when a visitor lands and matches their order back to it. Meta Ads spend syncs through a direct connection, so ROAS is per campaign; spend for other platforms can be entered by hand and counts in blended ROAS. The Ads Analytics dashboard applies your cost of goods, shipping and payment fees to show contribution margin and net profit after ad spend.
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