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ROAS calculator

Enter your ad spend and revenue to get your ROAS. Add your margin to instantly see whether you’re profitable.

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Shows whether your ROAS is profitable.

Enter your spend and revenue to get your ROAS.

How is ROAS calculated?

ROAS (return on ad spend) is the revenue your ads generated divided by what you spent on them. A ROAS of 4 (or 400%) means every dollar spent brought in $4 in revenue. It’s the go-to metric for judging whether an online store’s campaigns pay off.

What counts as a good ROAS?

There’s no one-size-fits-all ROAS target: it all comes down to your margin. Your break-even point is 100 divided by your margin as a percentage. On a 25% margin you need a ROAS of at least 4 to avoid losing money; on a 50% margin, a ROAS of 2 is enough. Always measure your ROAS against that threshold, which you can find with the break-even calculator.

Judge ROAS over time

ROAS jumps around from one day to the next, especially at low volume: judge it over three or four weeks, never on a single day. It’s also an average that lumps your best and worst campaigns into one number, so look at it campaign by campaign before drawing conclusions.

Common questions

How do you calculate ROAS?

ROAS is the revenue your ads generated divided by your ad spend. For example, $4,000 in sales on a $1,000 budget gives you a ROAS of 4, or 400%. In other words, every dollar invested brought in $4 in revenue.

What’s a good ROAS?

It depends entirely on your margin. Your break-even point is a ROAS of 100 divided by your margin as a percentage: on a 25% margin you need at least 4; on a 50% margin, a ROAS of 2 is enough. A good ROAS is simply one above that threshold.

What’s the difference between ROAS and ROI?

ROAS compares revenue to ad spend, without taking your costs into account. ROI looks at net profit, once margin and overhead are factored in. A high ROAS can hide a negative ROI if your margin is thin, which is why the number to compare against is your own break-even point.

Other calculators

CPA calculatorAd budget calculatorBreak-even calculatorConversion rate calculatorCPM, CPC and CTR calculatorMax bid calculator (max CPC)Customer lifetime value (LTV) calculator

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