ROAS calculator
Enter your ad revenue, ad spend, and optionally your gross margin. You get your ROAS as a ratio and a percentage, your break-even ROAS, and your actual profit on ad spend.
- ROAS
- 4.00×
- ROAS %
- 400%
- Ratio
- 4.00:1
Add your gross margin to see break-even ROAS and actual profit. Revenue over spend does not mean you made money.
How it works
ROAS is revenue divided by ad spend. If you spent 1,000 and generated 4,000 in tracked revenue, your ROAS is 4.0, which you can also read as 400% or 4:1. It answers one narrow question: how much revenue did each unit of ad spend bring back.
Revenue is not profit, so a ROAS above 1.0 does not mean you made money. Break-even ROAS is 1 divided by your gross margin: at a 50% margin you need a 2.0 ROAS just to cover the cost of goods and the ads. Any campaign running below your break-even ROAS is losing money on every sale, no matter how healthy the raw number looks.
The calculator also shows profit on ad spend, which is revenue times margin minus spend. This converts the ratio into a currency amount, which is usually what the decision actually hinges on. A high-ROAS campaign with tiny volume can produce less profit than a lower-ROAS campaign at scale, and this number makes that visible.
Assumptions and limitations
- ROAS depends entirely on how your platform or analytics tool attributes revenue; different attribution windows and models will report different ROAS for the same campaign.
- Platform-reported ROAS usually includes conversions that would have happened anyway, so it overstates the causal effect of the ads. Use an incrementality test to measure that.
- The break-even calculation uses gross margin only. It ignores overhead, shipping, returns, payment fees, and team costs, so your true break-even ROAS is higher than this figure.
- ROAS says nothing about volume. Cutting spend almost always raises ROAS while lowering total profit, so never optimize the ratio in isolation.
Frequently asked questions
What is a good ROAS?
There is no universal good ROAS because it depends on your gross margin. The break-even point is 1 divided by margin: a business with 80% margins can profit at a 1.5 ROAS while a business with 25% margins loses money at 3.5. Work out your own break-even ROAS first, then decide how much cushion above it you need to cover overhead and fund growth.
How do I calculate ROAS?
Divide the revenue attributed to your ads by the amount you spent on those ads. Spend of 2,000 that produced 6,000 in revenue is a ROAS of 3.0, also written as 300% or 3:1. The hard part is not the arithmetic but deciding which revenue genuinely belongs to the ads.
What is break-even ROAS?
Break-even ROAS is the ROAS at which your ads generate exactly zero profit, calculated as 1 divided by gross margin. At a 40% margin your break-even ROAS is 2.5; below that every conversion costs you money. It is the single most useful number for interpreting ROAS, because it turns an abstract ratio into a pass or fail line.
Is ROAS the same as ROI?
No. ROAS compares revenue to spend, while ROI compares profit to spend. A 2.0 ROAS at a 50% margin is exactly break-even, meaning 0% ROI. ROAS is convenient for day-to-day campaign management, but ROI or profit on ad spend is what tells you whether the campaign is worth running.
Is my data stored when I use this calculator?
No. Everything runs client-side in your browser, and nothing you type is transmitted to a server or stored anywhere. Refreshing the page clears your inputs.
More free tools like this, by email
I publish new calculators and explainers regularly. Get them when they land — no spam, unsubscribe anytime.