ROAS Calculator

ROAS = revenue ÷ ad spend. For $4,000.00 in revenue from $1,000.00 in ad spend: $4,000.00 ÷ $1,000.00 = 4x ROAS -- meaning 4x back for every $1 spent on ads.

Divide the revenue a campaign generated by what you spent on ads for it. $4,000.00 ÷ $1,000.00 = 4x. Use "Revenue + ad spend" mode above for your own numbers, or the other two modes to solve for spend or revenue instead.

The ROAS at which ad spend exactly equals the gross profit that revenue generated (before counting the ad spend), so profit after ads is $0. Break-even ROAS = 100 ÷ gross margin %. At a 50% gross margin, break-even ROAS is 2x; at a 25% margin, it's 4x. A campaign at exactly 4x ROAS and a 50% margin clears its 2x break-even with room to spare.

Because ROAS alone ignores your margin: it only compares revenue to ad spend, not PROFIT to ad spend. $4,000.00 revenue on $3,000.00 ad spend is a 1.33x ROAS -- more revenue than cost -- but at a 50% gross margin the break-even ROAS is 2x, so this campaign actually LOSES $1,000.00 once cost of goods is factored in. Always check ROAS against your break-even, not against zero.

It depends entirely on your gross margin and other costs (shipping, payment fees, overhead), not on a single universal number. A thin-margin business might need a 5x+ ROAS just to be comfortably profitable, while a high-margin digital product could be solidly profitable at 2x. Compare your ROAS to YOUR OWN break-even ROAS (100 ÷ your gross margin %) first, then set a target comfortably above that to also cover non-ad costs.

Ad spend = revenue ÷ target ROAS. To hit a 4x ROAS on $4,000.00 of revenue, spend no more than $1,000.00. Use "Revenue + target ROAS" mode above for your own numbers.

No. ROAS = revenue ÷ ad spend (a ratio of TOTAL revenue to spend). ROI = (profit ÷ cost) × 100, usually counting profit AFTER all costs, not just ad spend. A campaign can have a high ROAS but a low or negative ROI if margins are thin or other costs are high -- ROAS is a marketing-efficiency metric, ROI is a full profitability metric.

Not unless you build it into the revenue figure you enter. If a meaningful share of orders get refunded or discounted after the sale, use NET revenue (after those deductions) rather than gross order value for a more accurate ROAS and break-even comparison.

CPC (cost per click) and CTR (click-through rate) measure how efficiently ads generate clicks; ROAS measures how efficiently ad spend turns into revenue further down the funnel. A campaign can have a great CTR and low CPC but still a poor ROAS if those clicks don't convert -- see the CTR calculator and CPC calculator for those upstream metrics.

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