ROAS Calculator
Measure return on ad spend from your campaign revenue and cost.
How to use the ROAS Calculator
- Enter the revenue generated by your ad campaign.
- Enter the amount you spent on the ads.
- See your ROAS as a ratio and a percentage.
- Compare it against your break-even target.
ROAS = Revenue ÷ Ad spend (also shown as a percentage)
About the ROAS Calculator
Return on ad spend, or ROAS, is the headline number for judging whether advertising is working. It is simply the revenue a campaign generates divided by what you spent to run it, and this calculator shows it both as a ratio — 5x, meaning five dollars back for every one spent — and as a percentage. It also shows the raw profit over spend, so you can see the gain in money as well as in multiples.
The trap is treating a ROAS above 1x as automatically profitable. ROAS compares revenue to ad spend only; it ignores the cost of the product, fulfilment, and everything else. If your margin is 40%, you need well over 2x ROAS just to break even on a sale. That is why a true break-even ROAS is set from your margins, and a "good" ROAS is one comfortably above it — the right target varies hugely by business.
Use it to compare campaigns, channels and time periods on the same footing, and to spot when a channel has stopped paying its way. For the profit view on a product, pair it with the profit margin calculator, and for cost-per-thousand ad pricing the CPM calculator.
Frequently asked questions
What is a good ROAS?
It depends entirely on your margins. A common rough target is 3–4x, but a low-margin business may need more and a high-margin one less. Set your target above your break-even ROAS, not just above 1x.
Why is a ROAS above 1x not always profitable?
Because ROAS only counts ad spend, not the cost of the product and other expenses. If it costs money to make and deliver what you sell, you need a ROAS high enough to cover those costs too.
How is ROAS different from ROI?
ROAS compares revenue to ad spend. ROI compares profit to total cost. ROAS is quicker for judging ad efficiency; ROI is the fuller measure of whether you actually made money.