Free tool

ROAS calculator

Return on ad spend only means something next to your margin. Enter what you spent, what it sold and what you keep from a sale, and see whether the ads are paying for themselves.

  • Free
  • No account needed
  • Meta, Google, TikTok, Amazon

Margin before ads: what is left of a sale after product cost, fees and shipping, as a percent of the price. The profit margin calculator works it out.

Your ROASBreak-even

ROAS

0x

Break-even ROAS0x
ACoS0%
Profit after ad spend$0

ROAS formula and break-even ROAS

ROAS = revenue from ads divided by ad spend. Break-even ROAS = 1 divided by your margin before ads.

A campaign spending $1,000 to sell $4,000 has a ROAS of 4. At a 40% margin that $4,000 leaves $1,600 before ads, so after the $1,000 spend the campaign made $600. Its break-even ROAS is 2.5.

Break-even ROAS by margin

Margin before adsBreak-even ROASBreak-even ACoS
20%5x20%
30%3.33x30%
40%2.5x40%
50%2x50%
60%1.67x60%
70%1.43x70%

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Frequently asked questions

How do I calculate ROAS?

Divide the revenue your ads brought in by what you spent on them. $4,000 of sales from $1,000 of ad spend is a ROAS of 4, often written 4x or 400%.

What is a good ROAS?

Any ROAS above your break-even ROAS is profitable, and that depends entirely on your margin. A business keeping 40% of every sale before ads breaks even at a ROAS of 2.5; one keeping 20% needs 5. A "good ROAS of 4" rule of thumb is meaningless without your margin.

What is break-even ROAS?

One divided by your profit margin before ad spend. At a 40% margin, 1 / 0.40 = 2.5: below that, every ad sale loses money; above it, ads are profitable.

Is ROAS the same as ROI?

No. ROAS compares revenue with ad spend and ignores the cost of the product. ROI compares profit with spend. A campaign can show a ROAS of 3 and still lose money if the margin is under 33%.

How does ROAS relate to ACoS?

They are inverses. ACoS, the measure Amazon uses, is ad spend divided by ad sales; ROAS is ad sales divided by ad spend. A ROAS of 4 is an ACoS of 25%.

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