Digital Marketing & Media Planning Lab

Marketing ROI, Funnel & ROAS Lab

Calculate Return on Ad Spend (ROAS), customer acquisition funnels, Cost Per Click (CPC), Cost Per Acquisition (CPA), and break-even profit thresholds across paid campaigns.

Media Funnel Model ROAS Sensitivity Matrix Marketing Economics Theory FAQ

Campaign Channel Presets

Load calibrated marketing channel assumptions.

Step 1: Paid Media & Funnel Conversion Levers

Marketing Funnel & Unit Economics Parameters

1. Media Spend & Traffic Conversion

$
%
%

2. Order Value, Margins & Repeat LTV

$
%
LTV Multiplier models repeat purchases and multi-order lifetime expansion (e.g. 1.25 = 25% repeat revenue lift).
Return on Ad Spend
0.00x
Break-Even ROAS
0.00x
Net Contribution Profit
+$0
Cost Per Acquisition
$0.00
Cost Per Click
$0.00
Campaign Verdict
Profitable

Step 2: ROAS vs. Product Margin Sensitivity

Net Contribution Profit Matrix

Evaluates net bottom-line profit after advertising spend across varying realized ROAS campaign levels and product gross margins.

Campaign ROAS Level 40% Gross Margin 55% Gross Margin 70% Gross Margin 85% Gross Margin

Marketing Economics Guide

Understanding ROAS & acquisition economics

High top-line ROAS is meaningless if product gross margins are too thin to cover cost of goods sold.

  • The Break-Even ROAS Threshold: A business with 50% gross margin requires at least a 2.0x ROAS to break even on advertising. A brand with 80% margins only needs 1.25x ROAS.
  • Funnel Multiplication: Improving on-page conversion rate (CVR) from 2% to 4% cuts your effective Customer Acquisition Cost (CAC) exactly in half without changing ad creatives.
  • LTV Payback: First-order unprofitable campaigns (ROAS < Break-Even) can still be profitable if customers generate high repeat order value over 12 months.

Test cohort decay in our Unit Economics & LTV Lab.

Marketing Equations

Essential advertising formulas

ROAS = Total Campaign Revenue ÷ Total Ad Spend

Break-Even ROAS = 1 ÷ Product Gross Margin %

Cost Per Acquisition (CPA) = Total Ad Spend ÷ Total Conversions

Cost Per Click (CPC) = Total Ad Spend ÷ Total Clicks

Net Contribution Profit = (Revenue × Gross Margin %) − Ad Spend

Model retail markups in the Pricing Strategy Simulator.

FAQ

Marketing ROI and ROAS questions

What is Return on Ad Spend (ROAS) and how is it calculated?

ROAS measures the gross revenue generated for every dollar spent on advertising. It is calculated by dividing total campaign revenue by total advertising spend (Revenue ÷ Ad Spend).

What is Break-Even ROAS?

Break-Even ROAS is the minimum ROAS required to cover both ad spend and product cost of goods sold (COGS) without losing money. It equals 100 divided by the Product Gross Margin percentage (100 ÷ Margin %).

What is the difference between ROAS and Marketing ROI?

ROAS measures gross top-line revenue per ad dollar without factoring in product margins. Marketing ROI measures net bottom-line profit generated after deducting both ad spend and direct cost of goods sold.

How do CTR and CVR impact customer acquisition cost (CAC)?

Improving Click-Through Rate (CTR) lowers Cost Per Click (CPC), while improving Landing Page Conversion Rate (CVR) generates more customers per click, compounding to dramatically reduce total Cost Per Acquisition (CPA/CAC).

Can I export marketing funnel simulations to CSV?

Yes. You can export complete funnel stages, click metrics, CPA benchmarks, ROAS levels, and profit outputs as a UTF-8 CSV spreadsheet with formula injection defense or print an executive media plan.

Are these calculations guaranteed marketing forecasts?

No. This tool provides simplified educational models for marketing analytics training without guaranteed ad network delivery rates, platform tracking compliance, or certified financial forecasts.

Continue Exploring Marketing & Growth Tools

Explore our Marketing & Demand Simulation Hub, analyze customer cohort decay in the Unit Economics & LTV Lab, test pricing elasticity in the Pricing Strategy Simulator, or calculate sales break-even in the Break-Even Matrix Lab.