ROAS Calculator
Calculate your Return on Ad Spend — and whether your campaigns are truly profitable.
$
Total amount spent on ads during the campaign period
$
Total revenue attributed to your ad campaign
$
Cost of producing or procuring the goods/services sold via ads
x
Your campaign goal — see if you hit it
Results
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ROAS
Ad Spend —
Revenue from Ads —
Revenue per $1 spent —
Gross Profit (after ads & COGS) —
Ad Profit Margin —
Break-even ROAS —
What is a Good ROAS?
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Below 1x — Losing money on ads
Revenue is less than ad spend. Pause and reassess targeting.
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1x – 2x — Covering costs at best
Once you factor in COGS and overhead, this is likely unprofitable.
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2x – 4x — Break-even zone for most businesses
Depends heavily on your gross margin. Can be profitable for high-margin products.
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4x+ — Strong ROAS
The commonly cited benchmark. Most e-commerce businesses target 4x or higher.
Note: the right ROAS target varies by industry, product margin and business model. Use break-even ROAS (above) as your true floor.
Common Questions
- How is ROAS different from ROI?
- ROAS only compares revenue to ad spend. ROI accounts for all costs (goods, fulfilment, overheads) against net profit. ROAS tells you how efficient your ads are; ROI tells you if the whole business is profitable.
- What is break-even ROAS?
- Break-even ROAS is the minimum ROAS you need to cover your cost of goods and ad spend. Enter your COGS above and the calculator will work it out for you. The formula is: 1 ÷ Gross Margin %.
- Can I use this for Google Ads and Meta Ads?
- Yes. Enter the total ad spend and attributed revenue from any platform — Google Ads, Meta (Facebook/Instagram), TikTok, Amazon or any other channel.