Helpful Toolbox

ROAS Calculator

Type in your revenue and ad spend and instantly see whether your ads are actually making you money โ€” not just moving it around.

๐Ÿ“– How it works & FAQ

What ROAS actually tells you

Return on ad spend (ROAS) is the simplest health check for any ad campaign: revenue divided by ad spend. A ROAS of 4.00x (400%) means every $1 you put into ads brought back $4 in revenue. This calculator updates live as you type and shows ROAS as both a multiple and a percentage, plus the profit left over once your ads are paid for. Everything runs in your browser — your numbers are never uploaded anywhere.

Why break-even ROAS matters more

Revenue is not profit. If your gross profit margin is 40%, a $4 sale only leaves $1.60 to cover the ad that produced it. Break-even ROAS is 1 divided by your margin — at a 40% margin that is 2.50x, so any campaign below 2.50x is losing money even though it “returns” more than it spends. The calculator compares your actual ROAS to this break-even line and tells you whether the campaign is genuinely profitable. These figures are estimates only, not financial, tax, or legal advice.

How to use it

  1. Enter the revenue the campaign generated, from your ads dashboard or store analytics.
  2. Enter the total ad spend for the same campaign or period.
  3. Enter your gross profit margin — the percentage of revenue left after product, shipping, and fulfillment costs.
  4. Read the cards: ROAS as a multiple, ROAS as a percent, profit after ads, and your break-even ROAS.

FAQ

What counts as a good ROAS?
It depends entirely on margin. A 3x ROAS is excellent for a 70%-margin digital product but a loss for a 25%-margin physical one. Compare against your own break-even ROAS, not a generic benchmark.
Is ROAS the same as ROI?
No. ROAS compares revenue to ad spend; ROI compares profit to total cost. A campaign can post a strong ROAS and still have a negative ROI if margins are thin.
What margin should I enter?
Use gross margin: revenue minus product cost, shipping, transaction fees, and fulfillment, divided by revenue. Leave out fixed overhead for a campaign-level view.
Should I use platform-attributed revenue?
Start with the revenue your ad platform attributes to the campaign, but sanity-check it against actual store sales — attribution models often over-count.