Home Business & Marketing Marketing Metrics ROAS Calculator
Campaign Controls
Quick:

Common:
Industry:

Price minus COGS, before ad costs


Enables CPA metrics

LTV-Adjusted ROAS Advanced

Total revenue over customer lifetime

Repeat:
Campaign Dashboard
ROAS = Revenue / Ad Spend
Return on Ad Spend
5.00×
Net Profit
$1,500
Profitability Buffer Break-Even: 2.00×
Break-Even
You: 5.00×
0× (Loss) 10×+
✓ You are 3.00× above break-even
Revenue Breakdown $5,000
Break-Even ROAS 2.00× 1 ÷ Margin%
Gross Profit $2,500 Before ad spend
Max Ad Spend $2,500 Before break-even
Ad Efficiency 40% Budget headroom used
Gross $ / $1 Spend $2.50 Gross profit per $ spent
Range:
Spend multiplier 1.00×
→ Adjust slider to preview a scenario

ROAS MASTERY GUIDE

01

Pick a Solve Mode

Use Find ROAS to evaluate a live campaign. Switch to Find Revenue to discover what revenue you need to hit a ROAS target. Use Find Budget to calculate the maximum ad spend that preserves a target net margin.

02

Set Your Margin & Platform

Enter your gross margin to reveal the break-even ROAS and profitability buffer. Select your ad platform to compare against industry average benchmarks and see if you're above or below the norm.

03

Stress-Test & Scale

Drag the scenario slider to simulate scaling your budget up or down in real time. Use the LTV section to unlock lifetime-adjusted ROAS and see the true long-term value of each customer acquired.

How to Use This Calculator

1

Enter Ad Revenue

Input the total revenue generated from your advertising campaign or channel.

2

Enter Ad Spend

Input the total cost of the advertising campaign including creative, platform fees, and management.

3

Analyze Returns

Review your ROAS ratio, break-even point, and compare performance across platforms and campaigns.

Formula & Methodology

ROAS

ROAS = Revenue from Ads / Cost of Ads

A ROAS of 4.0 means every $1 spent returns $4 in revenue.

Break-Even ROAS

Break-Even ROAS = 1 / Profit Margin

If your margin is 25%, you need a minimum 4.0 ROAS to break even.

Profit from Ads

Profit = Revenue − Ad Spend − COGS

ROAS does not account for COGS; a high ROAS can still be unprofitable with thin margins.

Key Terms

ROAS
Return on Ad Spend — revenue generated per dollar of advertising cost.
Break-Even ROAS
The minimum ROAS needed to cover product costs and ad spend with zero profit.
Attribution Window
The time period after an ad click during which a conversion is credited to that ad (7-30 days typical).
COGS
Cost of Goods Sold — direct costs of producing the product, not included in ROAS calculation.
Blended ROAS
Overall ROAS across all advertising channels combined.

Real-World Examples

Example 1

Google Shopping

Ad Spend: $8,500, Revenue: $42,000, Profit Margin: 30%

ROAS: 4.94×. Break-even ROAS: 3.33×. Net profit after ad spend: $4,100.

Example 2

Meta Ads Campaign

Ad Spend: $3,200, Revenue: $11,500, Profit Margin: 40%

ROAS: 3.59×. Break-even ROAS: 2.50×. Net profit: $1,400.

ROAS Benchmarks by Platform

PlatformAverage ROASGood ROASExcellent ROAS
Google Search2.0×4.0×8.0×+
Google Shopping3.0×5.0×10.0×+
Facebook/Meta2.0×4.0×6.0×+
TikTok Ads1.5×3.0×5.0×+
Amazon Ads3.0×5.0×8.0×+

ROAS: The Essential Advertising Metric

ROAS vs ROI

ROAS measures gross revenue per ad dollar, while ROI accounts for all costs including product costs, overhead, and fulfillment. A campaign with 5× ROAS but 20% profit margins only returns $1 of profit per $1 spent (100% ROI). Always calculate profit-adjusted ROAS to understand true advertising profitability.

Improving ROAS

The fastest ROAS improvements come from eliminating waste: pause underperforming ad sets, tighten audience targeting, and improve landing page conversion rates. A landing page that converts at 4% instead of 2% doubles your ROAS without changing a single ad. Creative testing, bid optimization, and dayparting can add another 20-40% improvement.