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.
๐ How it works & FAQWhat 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
- Enter the revenue the campaign generated, from your ads dashboard or store analytics.
- Enter the total ad spend for the same campaign or period.
- Enter your gross profit margin — the percentage of revenue left after product, shipping, and fulfillment costs.
- 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.