ROAS Calculator

Calculate return on ad spend from revenue and ad cost, or solve for the revenue or budget you need. Add your margin and the ROAS calculator shows your break-even ROAS.

Updated
Runs in your browser. Your data is not uploaded.
Solve for

Shows your break-even ROAS

ROAS
–

How to use the ROAS Calculator

  1. Choose what to Solve for: ROAS, revenue, or ad spend.
  2. Enter the other two values, and your Profit margin if you want the break-even point.
  3. Press Calculate. The answer appears with ROAS as a percentage and, with a margin, whether the ads make money.

How it works

ROAS = revenue from ads ÷ ad spend
break-even ROAS = 1 ÷ profit margin

A ROAS of 5× means $5 of revenue for every $1 spent. Whether that is profitable depends on your margin: with a 40% margin you need at least 2.5× to cover the ad cost.

Examples

  • $25,000 revenue on $5,000 ad spend: 5.0× ROAS (500%).
  • With a 25% margin, break-even ROAS is 4.0×, so 5.0× is profitable.
  • To reach 4× ROAS on $5,000 of spend you need $20,000 in revenue.

ROAS versus ROI

ROAS compares revenue with ad cost. ROI compares profit with total cost. A campaign can have a healthy ROAS and still lose money once product costs are counted, which is why the break-even ROAS matters.

Limitations

  • Only ad spend is counted as cost. Agency fees and creative costs are not included unless you add them.
  • Attribution models decide which revenue counts as "from ads", and they vary between platforms.

Frequently asked questions

What is a good ROAS?

It depends on margins. A common benchmark is 4×, but the true minimum is your break-even ROAS, 1 ÷ margin.

How do I calculate ROAS?

Divide the revenue from ads by the amount spent on them.

What is break-even ROAS?

The ROAS at which ad-driven profit exactly covers ad spend. With a 40% margin it is 2.5×.

Often used together with the ROAS Calculator.