Free tool

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.

Revenue credited to your campaigns
What you paid the ad platforms
Revenue left after product, shipping and payment costs
ROAS
3.00
Break-even ROAS
2.22
Profit after ads
1,750
Ad spend as % of revenue
33.3%

A ROAS of 3.00 is above your break-even of 2.22, so these ads make money after product costs.

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.

ROASRevenue from ads ÷ ad spend
Break-even ROAS1 ÷ gross margin
Profit after adsRevenue × 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.

FAQ

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.

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