ROAS Calculator
Return on ad spend as a ratio and percentage, with profit after ads and the break-even ROAS for your margin.
Your ads
Filled in with example values. Replace them with your own.
Optional
Your gross margin: the share of each sale left after the cost of the product. Shows the break-even ROAS.
Shows the revenue the same spend would need.
Currency symbol
Results update as you type.
Result
ROAS: 4 : 1 (400%), $18,000.00 from $4,500.00 of ads
Return on ad spend
4 : 1
- ROAS as a percentage
- 400%
- Revenue minus ad spendBefore product costs
- $13,500.00
Spend and revenue
How it’s calculated
ROAS
$18,000.00 ÷ $4,500.00 = 4 : 1
How the ROAS calculator works
Enter what you spent on ads and the revenue they brought in. The calculator shows the return on ad spend as a ratio and a percentage. Add your gross margin to see whether the ads were profitable and the break-even ROAS for your business, or a target ROAS to see the revenue you would need.
The formulas
ROAS = Revenue from ads ÷ Ad spend
Gross profit = Revenue × Gross margin %
Profit after ads = Gross profit − Ad spend
Break-even ROAS = 1 ÷ Gross margin
Worked example
A shop spends 4,500 on ads that bring in 18,000 of sales, at a 35% gross margin:
- ROAS: 18,000 ÷ 4,500 = 4 : 1 (400%)
- Gross profit: 18,000 × 35% = 6,300
- Profit after ads: 6,300 − 4,500 = 1,800
- Break-even ROAS: 1 ÷ 0.35 = 2.86 : 1
Assumptions and limitations
- Money amounts are rounded half up to the cent.
- The margin is applied to all ad revenue alike. Mixed products with different margins need an average.
- Other costs, such as shipping, payment fees, agency fees or returns, are not included unless they are part of your margin.
- No benchmark ROAS is built in.
Frequently asked questions
What is the difference between ROAS and ROI?
ROAS compares revenue with ad spend only. ROI compares the gain with all the costs of an investment. A campaign can have a high ROAS and still lose money once the cost of the products sold is taken into account.
What is break-even ROAS?
The ROAS at which the gross profit from ad sales exactly pays for the ads. It is 1 divided by your gross margin: with a 25% margin you need 4 in revenue for every 1 spent before the ads make any profit.
What is a good ROAS?
One above your break-even ROAS, with room for your other costs. Because margins differ so much between businesses, a ROAS that is profitable for one can lose money for another.
Which revenue should I use?
The revenue your ad platform or analytics attributes to the ads, over the same period as the spend. Different attribution settings can give different figures, so use the same setting when you compare campaigns.
How is ROAS written?
As a ratio (4 : 1), a multiple (4×) or a percentage (400%). They all mean that every 1 spent brought in 4 in revenue.