CalcVerse

ROAS Calculator

ROAS (return on ad spend) is the revenue an ad campaign generates for every unit of currency spent on it. A ROAS of 4 means 4 in revenue for every 1 spent.

  • Last updated
  • Formula tested against reference values

Your numbers

Result

ROAS
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Calculating…

ROAS as a percentage
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Break-even ROAS
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Gross profit after ad spend
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How to use this calculator

  1. Enter or choose revenue from ads.
  2. Enter or choose ad spend.
  3. Enter or choose gross margin (optional).
  4. The rOAS updates as you type. Use Copy result or Share to keep it.

Formula

ROAS=Ad revenueAd spend, Break-even ROAS=1Margin

ROAS = Ad revenue ÷ Ad spend; Break-even ROAS = 1 ÷ Gross margin

Ad revenue
revenue attributed to the campaign
Margin
gross margin as a decimal

Worked example

  1. ROAS = 5,000 ÷ 1,000 = 5×.
  2. Break-even ROAS = 1 ÷ 0.40 = 2.5×.
  3. Gross profit = 5,000 × 0.40 − 1,000 = $1,000.

A 5× ROAS on a 40% margin product earns $1,000 after ad costs; anything below 2.5× would lose money.

What the result means

A “good” ROAS depends on your margin. A 3× ROAS is profitable at a 50% margin but loses money at a 25% margin, whose break-even ROAS is 4×.

Assumptions and limits

  • Revenue is the amount attributed to the ads by your tracking.
  • Attribution windows differ between ad platforms; ROAS ignores repeat purchases and customer lifetime value.

Questions

What is the difference between ROAS and ROI?

ROAS compares revenue with ad spend only. ROI compares profit with the total investment, including product and other costs.