ROAS Calculator
Return on ad spend and break-even ROAS.
Reviewed by the Calculation Machine team · Updated 24 October 2026 · How we check our maths
Your values
ⓘ Live results
- ROAS
- 4.38×
- Break-even ROAS
- 2.22×
- Gross profit after ads
- $4,080.00
- Verdict
- Profitable
Quick answer
ROAS (return on ad spend) is the revenue a campaign generated divided by what you spent on the ads. $18,400 of sales from $4,200 of spend is a 4.38× ROAS (438%). Break-even ROAS is 1 ÷ gross margin: at a 45% margin you need 2.22× just to cover product costs and ad spend, so this campaign made $4,080 in gross profit after ads.
What the ROAS calculator does
This calculator gives a campaign's ROAS, the break-even ROAS for your margin, and the gross profit left after ad costs, with a plain verdict on whether the campaign made or lost money. It suits e-commerce stores and anyone running Google, Meta, Amazon or TikTok ads where revenue can be tied to spend.
ROAS on its own says nothing about profit. A 4× ROAS is excellent for a product with a 60% margin and a loss for one with a 20% margin, which is why the margin input matters. Use contribution margin if you can — revenue minus product cost, shipping, payment fees and expected returns — rather than a gross margin that ignores those costs.
Ad platforms report revenue using their own attribution windows and often count the same sale in more than one channel. Check platform ROAS against orders in your store or analytics before acting on it. For a cost-per-customer view, compare with the customer acquisition cost calculator; if most buyers come back, customer lifetime value can justify a lower first-order ROAS.
The formula
ROAS = revenue ÷ ad spend Break-even ROAS = 1 ÷ margin Gross profit after ads = revenue × margin − ad spend
| Symbol | Meaning | Unit |
|---|---|---|
| revenue | Sales attributed to the campaign, excluding sales tax | $ |
| ad spend | Media cost paid to the platform (add agency or tool fees if you want them counted) | $ |
| margin | Gross or contribution margin as a decimal (45% = 0.45) | % |
ROAS is the standard ad-platform metric; Google Ads' target ROAS bidding expresses it as a percentage (438% rather than 4.38×). Break-even ROAS follows from setting revenue × margin equal to spend. The result covers only the first sale and ignores fixed overheads, so a campaign at break-even ROAS still does not contribute to rent or salaries.
Worked examples
Profitable e-commerce campaign
A skincare brand spends $4,200 on Meta ads in a month, which drive $18,400 of orders at a 45% gross margin.
Inputs
- Campaign revenue18400 $
- Ad spend4200 $
- Gross margin45 %
Result
- ROAS4.38×
- Break-even ROAS2.22×
- Gross profit after ads$4,080.00
- VerdictProfitable
A 4.38× ROAS against a 2.22× break-even leaves $4,080 of gross profit after ads. There is room to raise the budget, accepting that ROAS usually falls as spend scales.
Good-looking ROAS that loses money
An electronics accessories store spends $3,000 on Google Shopping for $9,600 of sales, but its margin after shipping and fees is only 25%.
Inputs
- Campaign revenue9600 $
- Ad spend3000 $
- Gross margin25 %
Result
- ROAS3.2×
- Break-even ROAS4×
- Gross profit after ads-$600.00
- VerdictLosing money
A 3.2× ROAS looks healthy, yet break-even is 4× and the campaign lost $600. Raise prices or bundle to lift margin, cut low-margin products from the feed, or set a target ROAS above 400%.
High-margin digital product
An online course seller spends $8,000 on YouTube and search ads for $52,000 of sales at a 70% margin after platform and payment fees.
Inputs
- Campaign revenue52000 $
- Ad spend8000 $
- Gross margin70 %
Result
- ROAS6.5×
- Break-even ROAS1.43×
- Gross profit after ads$28,400.00
- VerdictProfitable
At 6.5× against a 1.43× break-even, the campaign made $28,400 after ads. High-margin products can profitably accept a much lower ROAS when scaling.
Break-even ROAS by margin
Find your margin to see the minimum ROAS a campaign must reach before it makes any gross profit. Many advertisers set their target ROAS some way above break-even to leave room for overheads and attribution error.
| Gross margin | Break-even ROAS | As a percentage |
|---|---|---|
| 20% | 5.00× | 500% |
| 25% | 4.00× | 400% |
| 30% | 3.33× | 333% |
| 40% | 2.50× | 250% |
| 50% | 2.00× | 200% |
| 60% | 1.67× | 167% |
| 70% | 1.43× | 143% |
ROAS, ROI and POAS compared
- ROAS = revenue ÷ ad spend. Easy to get from ad platforms, blind to costs.
- ROI = (profit − investment) ÷ investment. Counts costs, so a campaign with a 4.38× ROAS and $4,080 gross profit on $4,200 spend has an ROI of about 97% on the ad money. The ROI calculator handles other investments.
- POAS (profit on ad spend) = gross profit ÷ ad spend. A POAS above 1 means the ads paid for themselves; it is break-even ROAS turned around.
If you can feed profit rather than revenue into your ad platform's conversion values, bidding will optimize for POAS automatically.
Why platform ROAS and real ROAS differ
- Attribution windows: a platform may credit a sale up to several days after a view or click, including people who would have bought anyway.
- Double counting: Google, Meta and email can all claim the same order. Totals across platforms often exceed actual revenue.
- Returns and cancellations: reported revenue is usually gross of refunds.
- Tracking gaps: browser privacy features and consent choices hide some conversions, pushing reported ROAS down.
A simple cross-check is blended ROAS (also called MER): total store revenue divided by total ad spend across all channels for the same period.
How to use the ROAS Calculator
- 1Enter campaign revenue from your ad platform or, better, from matched orders in your store, excluding tax.
- 2Enter the total ad spend for the same period and campaigns.
- 3Enter your gross margin; for accuracy use margin after product cost, shipping, payment fees and returns.
- 4Compare ROAS with break-even ROAS and read the gross profit after ads.
Frequently asked questions
What is a good ROAS?
Any ROAS above your break-even figure is profitable on the first sale. At a 50% margin that means anything over 2×; at a 25% margin you need more than 4×.
How do I calculate break-even ROAS?
Divide 1 by your margin as a decimal. A 35% margin gives 1 ÷ 0.35 = 2.86×, so every $1 of ads must bring in at least $2.86 of sales.
Is a 4x ROAS good?
It is profitable if your margin is above 25%. With a 20% margin a 4× ROAS loses money, because you need 5× to break even.
How do I convert ROAS to a percentage?
Multiply by 100. A 3.5× ROAS is 350%, which is how Google Ads expects a target ROAS to be entered.
Can a campaign with low ROAS still be worth running?
Yes, if new customers buy again. Subscription and repeat-purchase brands often accept a first-order ROAS near or below break-even when lifetime value comfortably covers the acquisition cost.
References
- Google Ads Help: About target ROAS bidding — Google
- Marketing Metrics: The Manager's Guide to Measuring Marketing Performance — Pearson (Farris, Bendle, Pfeifer and Reibstein)
About this calculator
- Built and reviewed by the Calculation Machine team · How we build and test calculators
- Last reviewed: October 24, 2026
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