ROAS Calculator

Return on ad spend as a ratio and percentage, plus break-even and target ROAS from your gross margin.

  • Runs in your browser
  • Free, no sign-up
Campaign results

Use revenue attributed to the ads and the spend for the same period.

Profitability

Your own figures. Gross margin is revenue minus cost of goods, as a % of revenue.

Share of revenue you want left after product costs and ad spend

Changes the symbol and number format only. No exchange rates are applied.

Results

ROAS
4 : 1
400%, or $4.00 revenue per $1.00 spent
Profit after ad spend
$1,500.00
Gross profit $4,000.00 minus ad spend
Break-even ROAS
2.5 : 1
At 40% gross margin
Target ROAS
3.33 : 1
To keep 10% of revenue as profit
ROAS is at or above your target.
Revenue
$10,000.00
Cost of goods (60%)
-$6,000.00
Gross profit
$4,000.00
Ad spend
-$2,500.00
Profit after ads
$1,500.00
Maximum spend to break even at this revenue
$4,000.00

Formulas

ROAS = Revenue / Ad spend = $10,000.00 / $2,500.00 = 4 Break-even ROAS = 1 / Gross margin = 1 / 0.4 = 2.5 Target ROAS = 1 / (Gross margin - Target profit margin) = 1 / (0.4 - 0.1) = 3.33

This calculator produces an estimate from the figures you enter. It is not financial, tax or legal advice.Full disclaimer

How to use the roas calculator

  1. Enter the revenue attributed to your ads and the ad spend for the same period.
  2. Enter your gross margin: revenue minus cost of goods, as a percentage of revenue.
  3. Optionally enter the profit margin you want to keep after product costs and ad spend.
  4. Compare your actual ROAS with the break-even and target ROAS.

Worked example

$10,000 revenue from $2,500 ad spend at a 40% gross margin

ROAS is 4.00:1 (400%). At a 40% margin the break-even ROAS is 2.50:1, so the ads are profitable: gross profit of $4,000 minus $2,500 spend leaves $1,500. To keep 10% of revenue as profit you need a target ROAS of 3.33:1.

How it works

ROAS = revenue ÷ ad spend (shown as a ratio and × 100 as a percentage). Break-even ROAS = 1 ÷ gross margin, because each unit of revenue only contributes its margin toward covering spend. Target ROAS = 1 ÷ (gross margin − target profit margin), where the target profit margin is the share of revenue you want left after product costs and ad spend.

Assumptions

  • Revenue is what your ad platform or analytics attributes to the ads; attribution models differ.
  • Gross margin and target margin are your own figures.
  • Other costs (agency fees, tools, shipping not in COGS) are not included; use the advertising ROI calculator for those.

Frequently asked questions

What is a good ROAS?

There is no universal number. A good ROAS is one above your break-even ROAS, which depends on your margin. A business with a 25% margin needs 4:1 just to break even; one with an 80% margin breaks even at 1.25:1.

Is ROAS the same as ROI?

No. ROAS compares revenue to ad spend. ROI compares profit to cost. A campaign can have a high ROAS and still lose money if margins are thin.

Why does my ad platform ROAS differ from my analytics?

Platforms use different attribution windows and models and may count view-through conversions. Pick one source and use it consistently.

Limitations

  • Uses the revenue you enter; it does not connect to ad platforms.
  • Ignores customer lifetime value; a low first-order ROAS can still pay off with repeat purchases.