Free merchant tool

ROAS Calculator

Measure your return on ad spend, find your break-even ROAS, and see the profit left after advertising.

Enter your ad results

Use the same campaign and dates for every number. Your numbers stay in your browser.

Campaign
$
What you spent on the campaign or channel.
$
Sales your ad platform or analytics credits to those ads.
%
Share of revenue left after product, shipping and payment costs.

How to calculate ROAS

Return on ad spend (ROAS) is the revenue your ads brought in divided by what they cost. A ROAS of 4x means every $1 of ad spend brought in $4 of sales.

ROAS = Revenue from ads ÷ Ad spend
Break-even ROAS = 1 ÷ (Gross margin ÷ 100)
Profit after ad spend = Revenue × Gross margin ÷ 100 − Ad spend

Worked example

You spend $1,000 on ads and they bring in $4,000 of sales, a ROAS of 4x. With a 40% margin, those sales leave $1,600 of gross profit, so the campaign makes $600 after paying for the ads. Your break-even ROAS is 1 ÷ 0.4 = 2.5x.

Why break-even ROAS matters

Revenue alone doesn't tell you whether ads pay for themselves. Break-even ROAS is the point at which the gross profit from the sales equals the ad spend. Below it, a campaign loses money however good the revenue looks; above it, it adds profit.

Merchant tip: Ad platforms can credit the same sale to more than one channel, or count sales that would have happened anyway. Compare the revenue your ad platform reports with the sales in your store's own analytics before you scale a campaign.

ROAS calculator FAQ

What is a good ROAS?

Any ROAS above your break-even ROAS is profitable, so a good ROAS depends on your margin. A store with a 60% margin breaks even at about 1.7x, while one with a 25% margin needs 4x just to cover its ad costs.

How is break-even ROAS calculated?

Divide 1 by your gross margin as a decimal. With a 40% margin, break-even ROAS is 1 ÷ 0.4 = 2.5x: every $1 of ads has to bring in $2.50 of sales to pay for itself.

What is the difference between ROAS and ROI?

ROAS compares revenue with ad spend. ROI compares profit with what you spent. A campaign can have a high ROAS and still lose money if your margin is thin, which is why this calculator also shows the profit left after ad costs.

What should I include in the margin?

Take every cost that comes with an order except advertising: the product, packaging, shipping and payment or marketplace fees. What's left, as a share of revenue, is your margin before ad costs.