💰 ROAS Calculator
Enter the revenue a campaign earned and what you spent on ads to see your return on ad spend. Add your gross margin to see the break-even ROAS and whether the ads really paid off.
🧮 Return on Ad Spend
What is a ROAS Calculator?
Return on ad spend is the metric that answers the question every marketer is asked: did the campaign make money? It compares the revenue a campaign generated with what you paid to run it, and this calculator turns those two figures into a clear ratio in one tap.
Alongside the headline ratio it shows revenue minus ad spend, and with your gross margin the break-even ROAS, the gross profit left after the ads and the ROI on ad spend. Use it to compare channels, set spend targets, and decide which campaigns deserve to scale.
❓ Frequently Asked Questions
What is ROAS and how is it calculated?
ROAS — return on ad spend — is revenue divided by ad spend. Spend $1,000 and earn $4,000 and your ROAS is 4, expressed as 4:1, meaning every dollar spent returned four. That $4 is revenue, not profit: the goods sold still have to be paid for. Add your gross margin and the calculator also shows the break-even ROAS and the gross profit left after the ads.
What is the difference between ROAS and ROI?
ROAS compares revenue to ad spend as a ratio; ROI compares profit to ad spend as a percentage. They only line up once the cost of the goods is taken out. At a 25% gross margin, $4,000 of revenue on $1,000 of ads leaves $1,000 of gross profit, which just pays for the ads: a 4:1 ROAS and a 0% ROI. At a 60% margin the same 4:1 leaves $1,400 after the ads, a 140% ROI. Revenue minus spend ($3,000 here) is not profit.
What is a good ROAS?
It depends on your margins. Break-even ROAS is 1 divided by your gross margin: 4:1 at a 25% margin, 2.5:1 at 40%, 1.67:1 at 60%. Anything above your own break-even made gross profit; anything below it lost money, whatever a rule of thumb says. Enter your margin to see yours.
Does ROAS account for product and overhead costs?
No. ROAS compares revenue only to ad spend, so it ignores the cost of goods, shipping, and overhead. A campaign can post a strong ROAS and still lose money once those are included. Treat ROAS as a media-efficiency metric and pair it with margin-based profit figures before declaring a campaign a success.