Free tools · Paid Media
ROAS Calculator
Work out your return on ad spend, and whether the campaign clears break-even.
ROAS calculator
Your numbers
Results update as you type. Nothing leaves your browser.
Profit left per sale after product cost. Unlocks break-even ROAS and true profit.
Return on ad spend
Enter revenue and ad spend to begin.
Enter your numbers
Add revenue and ad spend to see your ROAS. Add margin to check break-even.
ACOS
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Spend as % of revenue
Break-even ROAS
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Add your margin %
Net profit
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After product cost and ad spend
Return on investment
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Net profit as % of ad spend
The math, in plain sight
- ROAS
- Revenue ÷ Ad spend
- ACOS
- Ad spend ÷ Revenue × 100
- Break-even ROAS
- 1 ÷ Gross margin
- Net profit
- (Revenue × Gross margin) minus Ad spend
- ROI
- Net profit ÷ Ad spend × 100
You beat break-even when your ROAS is higher than 1 ÷ margin. At that point every extra unit of ad spend is making money, not burning it.
FAQ
ROAS Calculator, answered.
How do you calculate ROAS?
Revenue divided by ad spend. Earn 10,000 from 2,500 of spend and your ROAS is 4, often written 4x. It measures revenue, not profit, which is why the break-even figure matters more than the headline number.
What does a 2.5 ROAS mean?
You earned 2.50 back for every 1 you spent. Whether that is good depends on how much of each sale you keep after costs. If you keep very little, 2.5 loses money. If you keep most of it, 2.5 is comfortable.
What is ACOS?
ACOS is advertising cost of sale: your ad spend as a share of the revenue it brought in. It is ROAS turned upside down, so a 4 ROAS is a 25 percent ACOS. Amazon sellers live by it. Most other platforms quote ROAS instead.
Is a 12 ROAS good?
Usually, though it can also mean you are spending too little. A very high ROAS often means you are buying only the cheapest, most obvious demand. If you are well clear of break-even, the better question is why the budget is not bigger.
What is break-even ROAS?
The point where you stop losing money: 1 divided by the share of each sale you keep after costs. Keep 40 percent and break-even ROAS is 2.5. Below that you are buying sales at a loss. Work it out once and you have a floor for every campaign you run.
The number is not the plan.
The return figure is half the job: the other half is trusting the sales number you typed in, which needs proper tracking.
Where does your revenue figure come from? If someone types it in by hand at month end, the answer above is a rough guide. We wire the real number through from the sale itself.
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