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ROAS Calculator

Measure revenue earned for every unit of ad spend, and the ROAS you need to break even.

About the ROAS Calculator

Enter the revenue your ads brought in, what you spent on them and your gross margin. The calculator gives ROAS, the break-even ROAS for your margin, and the profit left after product costs and ad spend.

Because revenue isn't profit, compare ROAS with break-even ROAS = 1 ÷ gross margin: at a 40% margin you need 2.5× just to cover product costs and ad spend.

The formula

ROAS = ad revenue ÷ ad spend; break-even = 1 ÷ margin

Worked example

25,000 of revenue from 5,000 of ad spend, 40% gross margin

  1. ROAS = 25,000 ÷ 5,000 = 5×
  2. Break-even ROAS = 1 ÷ 0.40 = 2.5×
  3. Profit after ads: 25,000 × 40% − 5,000 = 5,000

Things to keep in mind

  • Other costs (shipping, returns, overheads) aren't included unless you fold them into the margin.

Questions people ask

ROAS vs ROI?

ROI uses profit and all costs; ROAS uses revenue and ad spend only.

Is attribution reliable?

Platform attribution often over-credits ads; test with holdouts.

What's a good ROAS?

Anything comfortably above your break-even ROAS; a 4× ROAS loses money at a 20% margin.