A practical tool
What does your return need to cover?
Explore a simple contribution model. Change the cost assumptions to see the media-only break-even ROAS.
Your scenario
Start with the costs.
Enter every cost on the same revenue basis. Starting values are illustrative.
Media-only break-even
Reported revenue per $1 of media spend needed to cover these variable costs and the media spend.
A simplified planning calculation. It excludes fixed overhead, management fees, taxes and costs not entered. It does not forecast performance or reconcile attribution.
Use the model
with care.
Keep the revenue basis consistent
Do not mix net revenue with costs calculated against gross revenue. If returns are already deducted, do not count them again.
Account for fixed fees separately
Management retainers and fixed overhead still need to be covered. This model includes only the variable costs entered and media spend.
Bring your own business records
The initial values are examples. Replace them with appropriate figures before using the result in planning.
Read the budget guide