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ROAS Calculator

Calculate the ROAS of your campaigns: how much revenue each dollar of ad spend brings in. You can also find the revenue you need to hit a target ROAS and, if you enter your gross margin, the break-even ROAS below which you lose money.

FreeNo sign-upInstant resultsUpdated:

Calculator

Mode
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$

Sales generated by your campaigns.

%

Used to find the minimum ROAS you need so you don't lose money.

ROAS

4x

400%

Revenue per $1 spent

$4.00

Revenue minus ad spend

$1,500.00

Before product costs

ROAS doesn't account for the cost of what you sell. Add your gross margin to see whether the campaign actually makes a profit.

Keep analyzing

For estimates only. Double-check the numbers before making important decisions.

What is ROAS?

ROAS (return on ad spend) is the revenue attributed to a campaign divided by what you spent on it. A ROAS of 4 (also written 4x or 400%) means every $1 in ads generated $4 in sales.

It's the standard metric in Google Ads, Meta Ads and most ad platforms for comparing campaigns, ad sets and channels.

How the calculator works

  • Calculate my ROAS: enter your ad spend and the attributed revenue. You get ROAS as a multiple and as a percentage.
  • Revenue for a target ROAS: enter your ad spend and the ROAS you're aiming for (for example, 4x). The calculator tells you how much your campaigns need to sell.
  • Gross margin (optional): with your margin, the calculator works out your break-even ROAS, the minimum needed to cover both product cost and ad spend.

ROAS formula

ROAS = Attributed revenue ÷ Ad spend
Required revenue = Ad spend × Target ROAS
Break-even ROAS = 1 ÷ Gross margin
With a 40% gross margin, break-even ROAS is 1 ÷ 0.40 = 2.5x.

How to read the results

A "good" ROAS depends entirely on your margin. With a 60% margin, a 2x ROAS is already profitable; with a 25% margin, you need at least 4x just to break even. That's why the calculator asks for your margin: it turns ROAS into an answer about profitability.

Gross marginBreak-even ROAS
25%4.00x
40%2.50x
60%1.67x
  • ROAS below 1: your ads bring in less revenue than they cost.
  • ROAS between 1 and break-even: you cover the ad spend but not the product cost, so you still lose money.
  • ROAS above break-even: the campaign is profitable. The further above it, the more room you have to scale.

ROAS depends on attribution. Different platforms credit the same sale in different ways, so always compare using the same attribution model and, when possible, check against your actual sales.

Example

You spend $500 on ads and the campaigns generate $2,000 in sales. ROAS is 2,000 ÷ 500 = 4x (400%): every $1 brings back $4. With a 40% gross margin, your break-even ROAS is 2.5x, so the campaign is profitable: $800 in gross profit minus $500 in ad spend leaves $300. To reach a 5x ROAS on the same spend, you'd need $2,500 in revenue.

  1. ROAS: $2,000 ÷ $500 = 4x
  2. Break-even at a 40% margin: 1 ÷ 0.40 = 2.5x
  3. Profit after ads: $2,000 × 0.40 − $500 = $300
  4. Revenue for 5x: $500 × 5 = $2,500

Common mistakes

  • Treating ROAS as profit. A 3x ROAS doesn't mean you tripled your money; product costs still have to come out.
  • Counting sales the campaign didn't drive, such as organic or repeat orders, to inflate the result.
  • Comparing ROAS across products with different margins without adjusting for them.
  • Optimizing for ROAS alone and cutting profitable spend: a slightly lower ROAS at much higher volume can bring in more total profit.

Frequently asked questions

What is a good ROAS?

One that comfortably beats your break-even ROAS (1 ÷ gross margin). With high margins a 2x ROAS can be excellent, while with thin margins even 5x may not be enough.

What's the difference between ROAS and ROI?

ROAS compares revenue with ad spend and ignores other costs. ROI compares net profit with total investment. ROAS helps you optimize campaigns; ROI tells you whether the business is actually making money.

How do I calculate break-even ROAS?

Divide 1 by your gross margin as a decimal. With a 40% margin, break-even ROAS is 1 ÷ 0.40 = 2.5x. Below that, the ads lose money once product costs are counted.

Is ROAS expressed as a multiple or a percentage?

Both are equivalent: 4x = 400%. Ad platforms show it either way, and the calculator shows both.

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