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ROAS calculator
Your ROAS, what a customer costs, and the ROAS you need to break even. Runs in your browser.
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How to read it
A high ROAS isn't automatically a good one.
Break-even ROAS is the number that matters
It's 1 divided by your gross margin. At 45% margin you need 2.22× to stand still. A 3× ROAS sounds strong until you are at 25% margin, where 4× is only break-even.
ROAS measures revenue, not profit
It ignores product cost, delivery, refunds, salaries and agency fees. Two campaigns with the same ROAS can have very different profits. Always compare ROAS with your margin.
ROAS may fall when you increase the budget
Your first spend reaches people already looking for you. A bigger budget reaches a wider audience, so ROAS falls. What matters is staying above break-even while total profit grows.
For ecommerce
The ROAS you actually need.
Spend in, return out. The threshold you must clear before any of it is profit has its own page.
Break-Even ROAS Scorecard
Enter order value, cost of goods, shipping, payment fees and returns. Returns your contribution per order, contribution margin and the exact ROAS you have to beat.
Work out my break-even →7-Day Profit Leak Audit
Seven days inside your accounts, every campaign re-scored on profit after costs rather than the revenue the ad platform reports.
See what the audit covers →ROAS guide
How to use a ROAS calculator without mistaking revenue for profit.
Return on ad spend, usually shortened to ROAS, compares the revenue attributed to advertising with the amount spent on that advertising. The formula is simple: attributed revenue divided by ad spend. Spend $10,000 and track $40,000 in revenue, and the reported ROAS is 4×. That ratio is useful because it makes campaigns of different sizes easier to compare.
The difficult part is deciding which revenue belongs to the ads. Advertising platforms, website analytics and payment records can produce different answers because they use different attribution windows and rules. Use one agreed measurement method for comparisons, and reconcile it with the money the business actually received.
What counts as a good ROAS?
There is no universal target. Education and real estate campaigns often need to connect advertising to a later offline sale. Clinics need to measure attended appointments rather than enquiries alone. DTC ecommerce brands need to subtract product cost, shipping, payment fees, returns and discounts. The same 4× ROAS can therefore be healthy for one business and unprofitable for another.
Your break-even ROAS provides a more useful starting point. Divide one by gross margin expressed as a decimal. A business with a 50% gross margin has a basic break-even ROAS of 2× before overheads and agency costs. Lower margins require a higher return. This calculator shows that threshold beside your current ROAS.
Why ROAS alone can mislead
ROAS measures revenue, not contribution or cash retained. It can also fall as a profitable campaign reaches a broader audience. A lower ratio is not automatically bad when total contribution grows, while a high ratio on very little spend may not materially help the business. Review ROAS with customer acquisition cost, conversion rate, repeat purchase and contribution after variable costs.
Use the result as a diagnostic, not a verdict. If performance sits below break-even, verify tracking before changing bids or creative. If it sits above break-even, examine whether more spend can add profitable customers without overwhelming fulfilment or sales.
Questions
ROAS calculator questions.
How do you calculate ROAS?
Divide revenue attributed to advertising by advertising spend. If $40,000 in tracked revenue came from $10,000 in spend, ROAS is 4×. The calculator does this automatically and also shows cost per customer.
What is a good ROAS?
A good ROAS is one that stays above your break-even point and leaves enough contribution to cover the rest of the business. The target depends on gross margin, repeat purchase, fulfilment costs and how revenue is attributed.
Why is break-even ROAS different for every business?
Margins differ. A high-margin service can remain healthy at a lower ROAS than a product business carrying manufacturing, shipping, returns and payment fees. Enter your own gross margin to calculate the relevant threshold.
Can ROAS increase while profit falls?
Yes. Discounts, higher product costs, returns or over-counted platform revenue can improve the reported ratio while reducing money retained. Compare platform ROAS with received revenue and contribution after variable costs.
What should I do if ROAS is below break-even?
Check measurement first, then examine the offer, audience, creative, landing experience and sales follow-up. Get a free growth review if you want help identifying which issue is costing the most.
Next step
Below break-even and not sure why?
We will review your numbers and explain whether the problem is measurement, the offer or the audience, whether or not you work with us.
BudgetBest suited to brands already investing at least $5,000 per month in paid growth.
TimelineYou leave the review with immediate priorities; execution timing depends on scope.
ApproachRecommendations are based on your economics, customer journey and measured evidence.
ReportingClear weekly updates and a deeper monthly review when we work together.