Free tool
ROAS Calculator
Calculate return on ad spend (ROAS), profit after ads and your break-even ROAS from your margin. See instantly whether your ads make or lose money.
What's left of each sale after product cost. Used for profit and break-even.
ROAS
4.17x
Every $1 of ad spend brought back $4.17 in revenue.
- ROAS as %
- 417%
- Break-even ROAS
- 2.5x
- Profit after ads
- $2,000
- ROI on ad spend
- 67%
Profitable
At a 40% margin you need at least 2.5x to break even, and you're above it.
The formulas
ROAS = revenue from ads ÷ ad spendBreak-even ROAS = 1 ÷ gross marginProfit after ads = revenue × gross margin − ad spendROI = profit after ads ÷ ad spend
Example
$12,500 revenue from $3,000 of ads is a 4.17x ROAS. With a 40% margin, break-even is 2.5x, so the campaign is profitable: $12,500 × 40% − $3,000 = $2,000 profit, a 67% ROI.
Why ROAS alone can mislead
A 3x ROAS sounds great, but with a 25% margin you need 4x just to break even. Always compare against break-even ROAS. And make sure revenue is attributed correctly: tag ad links with UTMs (try the UTM builder) so sales land on the right campaign.
Frequently asked questions
How do you calculate ROAS?+
Revenue from ads divided by ad spend. $5,000 in revenue from $1,000 of ads is a ROAS of 5x (or 500%).
What is break-even ROAS?+
1 divided by your gross margin. With a 40% margin you need a 2.5x ROAS just to cover product costs and ad spend.
What is a good ROAS?+
Anything above your break-even ROAS is profitable. A common target is 3–4x, but low-margin products need much more than high-margin ones.
What's the difference between ROAS and ROI?+
ROAS compares revenue to ad spend. ROI compares profit (after product costs) to spend, so it tells you whether you actually made money.
More free tools
Numbers like these, for your own site.
Cool Analytics shows conversions, sources and every visitor's journey. No cookies, one line of code.