Is your ROAS lying to you?

MoAS — Margin on Ad Spend — measures how much gross margin each unit of ad spend returns, after cost of goods. Where ROAS compares revenue to spend, MoAS compares profit margin to spend. A MoAS of 1.0 means your ads exactly break even; anything below 1.0 means they lose money once product cost is counted.

ROAS (Return on Ad Spend) is revenue divided by ad spend — it ignores the cost of what you sold, so a 4× ROAS can still be unprofitable. MoAS folds in your gross margin: MoAS = ROAS × margin. It is the number that tells you whether a campaign actually makes money, not just revenue.

Multiply your revenue by your gross margin to get margin dollars, then divide by ad spend. For example, $40,000 revenue at 25% margin is $10,000 of margin; on $10,000 of ad spend that is a MoAS of 1.0 — exactly break-even. The calculator above does this instantly and shows your break-even ROAS too.

Above 1.0 means your ads are profitable after product cost; many agencies aim for 1.5×–2× or higher for healthy margins. Because it depends on your gross margin, the right target varies by business — Addlaa shows MoAS per campaign and per client, so you can see exactly which ones clear the bar.

Yes, it is free and needs no sign-up. The calculation runs entirely in your browser — nothing you type is sent or stored unless you choose to leave your email for a follow-up on your own campaign data.

Not necessarily. ROAS alone can point you at the wrong campaign, because it ignores product margin. The one to scale is the one with the highest MoAS — the campaign returning the most real profit per dollar of spend, not just the most revenue. Addlaa's Profitability lens ranks every campaign this way, so the scale-up decision is made on margin, not on a misleading top-line number.