ROAS Calculator
Work out return on ad spend, ad profit and the break-even ROAS for your margin.
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How to do it
- 1Fill in the boxes
Type your numbers or pick the options you need.
- 2See the result
The answer updates right away as you change a value.
- 3Use it
Copy the result or note it down. Nothing is sent anywhere.
About this tool
Enter the revenue from ads, the ad spend and your gross profit margin. The calculator shows ROAS, profit after ad spend, ROI and the break-even ROAS you need before ads make money.
What ROAS is
Return on ad spend is revenue divided by spend. A ROAS of 4 means every dollar of ads brought in four dollars of revenue. It is not profit, because costs of goods are not counted.
Break-even
Break-even ROAS is one divided by your margin. At a 40 percent margin you need 2.5 to cover ad costs. Anything above that is profit.
Example
$12,000 revenue from $3,000 of ads is a ROAS of 4.0. At a 40 percent margin the profit after ads is $1,800, an ROI of 60 percent.
Frequently asked questions
What is a good ROAS?
It depends on margin. Many businesses aim for 3 to 5, but the break-even figure matters more.
Is ROAS the same as ROI?
No. ROAS is revenue over spend. ROI includes costs and shows profit over spend.
What margin should I use?
Gross margin after the cost of goods, before ad spend.
Does it include other costs?
No. Add shipping, fees and overhead into your margin to be careful.