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ROAS calculator

Enter the revenue your ads generated and what you spent. Add your gross margin to see whether that ROAS actually makes money.

Your numbers

Revenue attributed to the campaigns, in USD.

What you paid the ad platform over the same period.

Revenue minus cost of goods, as a percent of revenue.

Results

Enter your numbers to see results. They update as you type.

What this calculator tells you

Return on ad spend (ROAS) is the revenue your ads brought in for every dollar you spent on them. It is the headline number in both Google Ads and Meta Ads Manager, but on its own it hides the question that matters most: after the cost of the product, did the campaign make a profit?

This calculator gives you the plain ROAS figure, then uses your gross margin to show profit ROAS (gross profit per ad dollar), net profit after ad spend, and the break-even ROAS your campaigns need to beat.

How it works

  1. Enter the revenue attributed to your ads and the ad spend for the same date range. Use the same attribution window you report on, or the numbers will not line up.
  2. The calculator divides revenue by spend. A result of 4.00x means every dollar of ad spend returned four dollars of revenue.
  3. Add your gross margin to convert revenue into gross profit. Profit ROAS above 1.00x means the ads paid for themselves after product costs; below 1.00x means they lost money even if the headline ROAS looks healthy.

The formula

ROAS
Revenue from ads ÷ Ad spend
Gross profit
Revenue from ads × Gross margin
Profit ROAS
Gross profit ÷ Ad spend
Net profit after ads
Gross profit − Ad spend
Break-even ROAS
1 ÷ Gross margin

Worked example

Example figures for illustration, not benchmarks.

A store spends $3,000 on ads in a month and the platform reports $12,000 in revenue. ROAS is $12,000 ÷ $3,000 = 4.00x. With a 40% gross margin, that revenue carries $4,800 of gross profit, so profit ROAS is 1.60x and the campaign cleared $1,800 after paying for the ads. The break-even ROAS at a 40% margin is 2.50x, so this account has room to spend more before it stops being profitable.

Frequently asked questions

What is a good ROAS?

A good ROAS is any ROAS above your break-even point, and that point depends on your margin. At a 40% gross margin you break even at 2.50x; at a 25% margin you need 4.00x. That is why two businesses can look at the same ROAS and reach opposite conclusions. Enter your margin above to see your own break-even ROAS.

What is the difference between ROAS and ROI?

ROAS compares revenue to ad spend only. ROI compares profit to the total investment, so it accounts for product costs and other expenses. Profit ROAS sits in between: it uses gross profit instead of revenue, which makes it a quick proxy for whether ads are profitable.

Is ROAS the same as return on investment for my whole business?

No. ROAS only covers the revenue the ad platform attributes to your campaigns. It does not include repeat purchases outside the attribution window, overhead, or the value of new customers over time. Use it to compare campaigns and set bids, and use profit metrics to judge the business.

Why is my ROAS different in Google Ads, Meta Ads and my store analytics?

Each platform credits conversions to its own ads using its own attribution window and model, so the same sale can be counted by more than one platform. Your store or analytics tool usually credits one channel. Pick one source of truth for decisions and use platform ROAS for comparisons within that platform.

How do I express ROAS as a percentage?

Multiply the ratio by 100. A ROAS of 4.00x is 400%. Both forms mean the same thing; ad platforms usually show the ratio.

Want to know why your numbers look this way?

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