What ROAS do your ads actually need?
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Most competently run campaigns clear this. Your margin gives ads real room to work.
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These are the six metrics that decide whether your ads make you money.
Contribution margin
What one order leaves you before you pay for ads. Some call it profit per order. Every metric below is built on this one.
Gross margin
The share of every ringgit you keep. Everything about ad viability flows from this one number.
Breakeven ROAS
The return your ads must clear before you make anything. At 50% margin that's 2.0. At 18% margin it's 5.6.
Max cost per purchase
The most you can pay Meta or Google for one order before it loses money. This is your CPA ceiling inside the ad account.
Net profit per order
What's left after ads take their share. This is the number the calculator turns red when your ROAS sits below breakeven.
LTV : CAC
One order rarely tells the whole story. A customer who reorders three times can justify breaking even on the first. Healthy brands sit at 3:1 or better.
What is breakeven ROAS?
Breakeven ROAS is the return on ad spend at which your ads make no profit and no loss. It's calculated as selling price divided by your profit per order before ad spend, which is the same as 1 divided by your gross margin. At a 50% margin your breakeven ROAS is 2.0, so any campaign returning less than RM2 for every RM1 spent is losing you money.
What is a good ROAS in Malaysia?
There is no universal good ROAS, because the same number can be profitable for one brand and loss-making for another. A 3.0 ROAS loses money at a 25% margin but is strongly profitable at a 70% margin. Judge your campaigns against your own breakeven ROAS, not against industry chatter.
Why does margin matter more than ROAS?
ROAS measures the ads. Margin decides whether the ads can ever work. A brand with an 18% gross margin needs roughly a 5.6 ROAS just to break even, which almost no campaign sustains at scale. A brand at 65% margin breaks even at 1.5. Improving margin, through pricing, bundles or cost per order, does more for ad profitability than any optimisation inside the ad account.
Does the calculator store my numbers?
No. The maths runs in your browser and nothing is saved or sent anywhere, unless you choose to email yourself the breakdown, in which case we receive a copy of those numbers with your email address.