METHOD & GUIDANCE
How this calculation works
Enter figures from the same period and on a consistent VAT-inclusive or VAT-exclusive basis. Tool IQ recalculates every output immediately; nothing you enter is saved or sent to us.
How to use the result
Compare headline ROAS with the break-even level implied by gross margin and campaign costs, then validate how revenue was attributed before increasing spend.
Worked example
The opening campaign spends 5,000 and attributes 20,000 revenue, producing 4× ROAS. Margin and other costs determine whether that return is actually profitable.
Common mistakes
- Treating revenue less ad spend as profit.
- Ignoring agency, creative or promotion cost.
- Crediting every conversion to one advertising channel.
Frequently asked questions
Is this calculator free?
Yes. It requires no account and stores no calculation inputs.
Can I use the answer for a formal filing?
No. It is a planning estimate, not accounting, tax, legal or investment advice. Confirm material decisions with a qualified professional.
Should I include VAT?
Use a consistent basis throughout. Businesses that recover input tax commonly model net figures; consumer-facing prices are often considered gross.
Continue the decision
- Customer Acquisition Cost Calculator — Compare acquisition cost with estimated customer value.
- Profit Margin Calculator — See profit, margin and markup from one sale.
Method reviewed 26 July 2026. Figures are illustrative and calculated locally in your browser.