ROAS Calculator
Enter ad spend and attributed revenue to see ROAS, actual profit after product costs, and the break-even ROAS your gross margin requires.
How to use the roas calculator
- Enter what you spent on ads in the period — all channels, if you want the blended view.
- Enter the revenue those ads produced, using one consistent attribution window.
- Enter your gross margin so the calculator can convert revenue into actual profit.
- Compare your ROAS against the break-even ROAS: below it, ads are losing money even when "working."
Formula
About this calculator
ROAS tells you revenue per dollar of ad spend, but revenue is not profit — and this is where most ROAS analysis goes wrong. A 4× ROAS at a 25% gross margin is actually losing money: $4 of revenue carries only $1 of gross profit against $1 of ad cost. Break-even ROAS is 100 divided by your margin percentage, and it is the single most important number in paid acquisition.
The second trap is attribution. Platform-reported ROAS counts conversions the platform claims, with generous windows and last-click credit; it is systematically flattering. Blended ROAS — total ad spend across everything divided by total revenue — is lower and more honest. Track both, but make budget decisions on the blended number.
Healthy ROAS targets depend on margin structure. High-margin info products can scale profitably at 2–3×; physical products with 40% margins may need 2.5× just to break even. When your actual ROAS sits close to break-even, growth spending converts directly into risk — the right move is usually margin work (price, COGS, AOV) before more spend.
Frequently asked questions
What is a good ROAS?
It depends entirely on margin. At 60% gross margin, anything above 1.67× is profitable; at 25% margin you need over 4×. Judge ROAS against your break-even number, not a universal benchmark.
How do I calculate break-even ROAS?
Divide 100 by your gross margin percentage. A 50% margin gives a break-even ROAS of 2.0× — below that, every advertising dollar loses money.
ROAS vs ROI — which should I use?
ROAS is revenue-focused and good for channel optimization; ROI (or ad profit) accounts for product costs and is the truth for whether to scale. Use ROAS to steer, ROI to decide.
Why does platform ROAS differ from mine?
Platforms use their own attribution windows and claim conversions across channels. Blended numbers from your own revenue data are lower but closer to reality.