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