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Free ROAS calculator
ROAS Calculator: measure return on ad spend
Enter your ad spend and the revenue it produced to see your ROAS, ROI, break-even point and the spend needed to hit a target return.
Campaign numbers
Use one campaign, one channel, or your whole account — just keep the period consistent.
$
$
Optional — used for cost per acquisition
%
Drives your break-even ROAS
x
The return you want per $1 of spend
The ROAS formula
- ROAS
- Revenue from ads ÷ ad spend. A 4x ROAS means $4 of revenue for every $1 spent.
- Profit ROAS
- ROAS × gross margin. It converts the revenue ratio into the margin dollars each $1 of spend actually returns.
- ROI on ad spend
- (Gross profit − ad spend) ÷ ad spend, as a percentage. Profit-based, so a 4x ROAS at a 30% margin is still a 20% loss.
- Break-even ROAS
- 1 ÷ gross margin. At a 60% margin you need roughly 1.67x ROAS before ads stop losing money.
- Target spend
- Revenue ÷ target ROAS shows the maximum spend that still hits your goal at today's revenue.
Frequently asked questions
- What is ROAS?
- ROAS (return on ad spend) is the revenue generated by advertising divided by the amount spent on that advertising. A 4x ROAS means every $1 of ad spend produced $4 in revenue.
- How do you calculate ROAS?
- Divide revenue attributed to your ads by the ad spend for the same period. $40,000 in revenue from $10,000 of spend equals a 4x ROAS, or 400%.
- What is the difference between ROAS and ROI?
- ROAS compares gross revenue to ad spend. ROI subtracts the spend (and often other costs) first, so it measures profit rather than revenue. A campaign can show a strong ROAS and still lose money at thin margins.
- What is a good ROAS?
- It depends on margins. Many ecommerce brands target 3x to 4x, while high-margin software businesses can be profitable below that. Compare your ROAS against your break-even ROAS instead of a generic benchmark.
- What is break-even ROAS?
- Break-even ROAS is 1 divided by your gross margin. At a 60% gross margin your break-even is about 1.67x, so anything above that contributes profit and anything below loses money.
- How much can I spend and still hit my target ROAS?
- Divide the revenue your ads produce by your target ROAS. If ads generate $40,000 and you want a 5x return, spend must stay at or below $8,000 — otherwise revenue has to rise instead.