ROAS Calculator
Calculate return on ad spend as a multiple and percentage, plus your break-even ROAS from gross margin — free and instant.
About the ROAS Calculator
ROAS — return on advertising spend — is the revenue your ads generate per unit of money spent. Enter your ad spend and the revenue attributed to it, and this calculator returns the ROAS as a multiple (4× means 4 of revenue per 1 of spend) and as a percentage, along with the raw revenue-minus-spend figure.
The number that separates professionals from dashboards is break-even ROAS: because revenue isn't profit, a 3× ROAS can still lose money once product costs are paid. Enter your gross margin and the tool computes break-even ROAS = 100 ÷ margin% — at a 40% margin you need at least 2.5× just to break even on ad spend, and it also shows your actual profit after product costs.
Use ROAS to compare campaigns, channels and creatives on a common scale, but pair it with margin-aware metrics before scaling budget: the campaign with the highest ROAS is not automatically the most profitable one to grow.
How to Use the ROAS Calculator
- 1Enter your ad spend for the campaign or period.
- 2Enter the revenue attributed to those ads.
- 3Optionally add your gross margin to see break-even ROAS and true profit.
- 4Compare campaigns using the ROAS multiple.
Frequently Asked Questions
How is ROAS calculated? A worked example
ROAS = attributed revenue ÷ ad spend. Spending 2,000 on ads that drive 9,000 of revenue gives ROAS = 4.5×, or 450%. The gross gain before product costs is 7,000.
What is a good ROAS?
It depends entirely on your margins. E-commerce commonly targets 3–4× as a healthy working level; high-margin digital products can profit at 1.5×, while thin-margin retail may need 5×+. Compute your break-even ROAS from your gross margin first, then set targets above it.
What is break-even ROAS and how do I find mine?
It's the ROAS at which ad-driven sales exactly cover both product costs and ad spend: break-even ROAS = 100 ÷ gross margin %. At a 40% margin, 100 ÷ 40 = 2.5×. The 4.5× campaign above at that margin nets 9,000 × 0.40 − 2,000 = 1,600 of real profit.
How is ROAS different from ROI?
ROAS compares revenue to ad spend only and ignores product costs (4.5× ROAS = 350% 'return' on that narrow basis). ROI compares profit to total investment: the same campaign at 40% margin has ROI = 1,600 ÷ 2,000 = 80%. ROAS is the campaign-level speedometer; ROI is the business truth.
Why does my platform-reported ROAS differ from reality?
Attribution. Ad platforms credit themselves generously (view-through conversions, long click windows, overlap with other channels), so platform ROAS usually exceeds what incrementality tests show. Treat reported ROAS as a relative signal for comparing campaigns within a platform, not as exact revenue truth.