ROAS Calculator (Return on Ad Spend)
Calculate return on ad spend (ROAS), ad-driven profit after product costs, and the break-even ROAS for your margin.
How to use
- 1Enter ad spend and the revenue it generated.
- 2Enter your gross margin to see profit and the break-even ROAS.
How it's calculated
ROAS = revenue ÷ ad spend. Break-even ROAS = 1 ÷ gross margin. Profit = revenue × margin − ad spend.
Frequently asked questions
What is a good ROAS?
It depends on margin. With a 25% margin you need at least 4× just to break even; with 75% margins, 1.33× breaks even.
ROAS vs ROI — what's the difference?
ROAS divides revenue by ad spend only. ROI subtracts all costs (product, shipping, fees) and compares profit to investment.
Should I include agency fees?
Yes — add them to ad spend for a true picture of your advertising cost.