Margin threshold calculator
A fixed daily budget turns your ads off when the money runs out, even if the next order would have been profitable. A margin threshold turns them off only when orders stop clearing the margin you need. Enter your numbers to get your threshold and see how much more demand it could keep running.
How the calculation works
Contribution margin is what's left from each dollar of revenue after product cost, refunds and per-order costs such as shipping and payment fees. It comes before ad spend.
Your threshold is the lowest blended ROAS that still leaves your target margin once ad spend is paid: 1 ÷ (contribution margin − target margin). Divide your order value by the same number and you get the most you can pay per order. Set either one as your target ROAS, target CPA or bid guardrail in place of a daily cap.
Spend projections assume each extra dollar returns a little less than the one before, starting from your ROAS at today's cap. How quickly returns fall depends on the saturation level you pick. Treat the projections as estimates and raise spend in steps, checking real ROAS as you go. The model doesn't look past 5× your current budget.
Live hours assume demand is spread evenly through the day. AdLytics measures each channel's real contribution and diminishing returns from your own data, so you can see which channels have room to grow.