ROAS Calculator
Find your return on ad spend, then go further: add a profit margin to see gross profit, net profit, ROI, and the break-even ROAS your campaign must clear to make money. You can also reverse-solve, set a target ROAS to find the revenue or the ad budget it implies.
Formula
Worked example
A campaign earns $5,000 on $1,250 of ad spend: ROAS = 5,000 ÷ 1,250 = 4.0x (400%). At a 50% gross margin, break-even ROAS is 1 ÷ 0.5 = 2.0x. Gross profit is $2,500, and net profit after the $1,250 of ad spend is $1,250, an ROI of 100%.
What ROAS tells you
Return on ad spend divides the revenue a campaign generated by the amount you spent to run it, giving the revenue earned per advertising dollar. A ROAS of 4x (400%) means every dollar spent brought back four dollars of sales. It is the standard headline metric for judging whether a paid channel, campaign, or ad set is pulling its weight, because it is fast to compute and easy to compare across campaigns of very different sizes.
Break-even ROAS, profit, and ROI
ROAS measures revenue, not the money you keep. Turn on the profit margin option and the calculator adds the numbers that matter: your break-even ROAS (one divided by your gross margin), gross profit (revenue times margin), net profit (gross profit minus ad spend and any other costs), and ROI (net profit divided by total cost). A 50% margin product needs at least a 2x ROAS just to cover its cost of goods and ad spend, so anything below that loses money even though the ROAS looks positive.
Reverse-solve a revenue or budget target
Switch the mode to plan instead of measure. Pick "Revenue needed for a target ROAS" and enter your target plus planned spend, and the calculator returns the revenue the campaign must produce (target ROAS times spend). Pick "Ad budget for a target ROAS" and enter your target plus expected revenue, and it returns the most you can spend and still hit that return (revenue divided by target ROAS). This is how you set a spending cap or a sales goal before a campaign launches.
Watch how revenue is attributed
The number you put in for revenue depends heavily on attribution: last-click, view-through, a 7-day window, or platform-reported figures can differ widely from what your accounting actually records. Use the same period for revenue and spend, prefer the revenue figure your finance system can confirm, and keep your attribution model consistent so the ROAS you compute this month is comparable to last month.
Interpreting ROAS
| ROAS | As a percentage | What it means |
|---|---|---|
| Below 1× | Below 100% | Below break-even on revenue |
| 1× to 2× | 100% to 200% | Low, often unprofitable after costs |
| 2× to 4× | 200% to 400% | Healthy for many businesses |
| 4× and above | 400% and above | Strong return |
General guidance, your true target depends on product margins and goals.
Frequently asked questions
What is a good ROAS?
A common rule of thumb is 4x (400%), but the right target depends entirely on your margins. High-margin products can be profitable at 2x or lower, while thin-margin retail may need 6x or more. Compare your ROAS to your break-even ROAS, which is 1 divided by your gross margin.
How do I calculate break-even ROAS?
Break-even ROAS is 1 divided by your gross profit margin expressed as a decimal. At a 50% margin it is 1 ÷ 0.5 = 2x, at a 25% margin it is 1 ÷ 0.25 = 4x. Any ROAS above that figure means the campaign covers its product cost and ad spend. Turn on the profit margin option to see yours.
How is ROAS different from ROI?
ROAS divides revenue by ad spend and ignores other costs, so it measures top-line return on advertising. ROI measures profit relative to total cost, subtracting cost of goods, fulfilment, and overhead. A campaign can have a strong ROAS and still lose money on ROI. This calculator shows both when you add a profit margin.
Can I work out the revenue or budget for a target ROAS?
Yes. Switch the mode at the top. To find the revenue a target needs, multiply the target ROAS by your planned spend. To find the budget a target allows, divide expected revenue by the target ROAS. The calculator does both for you so you can set a goal or a spending cap before launch.