ROAS calculator
Calculate your return on ad spend and the break-even ROAS for your margin, so you know which number your campaigns have to beat.
- ROAS
- 3.00
- Break-even ROAS
- 2.22
- Profit after ads
- 1,750
- Ad spend as % of revenue
A ROAS of 3.00 is above your break-even of 2.22, so these ads make money after product costs.
Enter your ad spend to see ROAS.
Your ROAS is {r}. Add your gross margin to see whether that is profitable.
A ROAS of {r} is above your break-even of {be}, so these ads make money after product costs.
A ROAS of {r} is exactly your break-even, so these ads cover their cost and nothing more.
A ROAS of {r} is below your break-even of {be}, so these ads cost more than the margin they bring.
How to calculate ROAS
ROAS (return on ad spend) is revenue from ads divided by ad spend. 15,000 in revenue from 5,000 in spend is a ROAS of 3.0, sometimes written as 300% or 3:1.
| ROAS | Revenue from ads ÷ ad spend |
| Break-even ROAS | 1 ÷ gross margin |
| Profit after ads | Revenue × gross margin − ad spend |
What is a good ROAS?
It depends on your margin. With a 45% gross margin, break-even ROAS is 1 ÷ 0.45 = 2.22. A ROAS of 3.0 clears that, and the example makes 15,000 × 0.45 − 5,000 = 1,750 after ads. A store with a 25% margin needs a ROAS of 4.0 just to break even, so the same 3.0 would lose money.
Why your ROAS differs between tools
Ad platforms count view-through conversions, use their own attribution windows and each claim the same sale. Your store only sees each order once. Server-side tracking gives the platforms the orders their pixels miss, and a neutral attribution model shows which channel really drove them. Read ROAS meaning: formula, examples and what a good ROAS is.
Go beyond ROAS
ROAS ignores what each order costs you. To see profit per campaign, try the POAS calculator, or let ROASaurus calculate ROAS, break-even ROAS and POAS from your real orders and costs with profit analytics.
Questions, answered
What is the ROAS formula?
ROAS = revenue from ads ÷ ad spend. A ROAS of 4 means every 1 spent on ads brought in 4 in revenue.
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 = 2.5.
Is a ROAS of 2 good?
Only if your gross margin is above 50%. Below that, a ROAS of 2 means the ads cost more than the margin the orders bring in.
Should I use platform ROAS or blended ROAS?
Use both. Platform ROAS helps compare campaigns within one channel. Blended ROAS (total revenue ÷ total ad spend) shows whether advertising as a whole pays off.
Every sale, traced to the ad that earned it
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