✦ Free ROAS calculator
ROAS calculator: find out if your ads make money
ROAS, or return on ad spend, shows how much revenue each ad dollar brings in. On its own, it can’t tell you whether you made money. Add your gross margin and this calculator shows your break-even ROAS, the ROAS you need to hit a profit goal, your profit after ads and your cost per order. It’s free, there’s no sign-up, and your numbers stay in your browser.
Results
Every $1.00 you spent on ads brought in $4.00 in sales. At a 40% margin you need 2.50x to break even, so you're 1.50x above it. You kept $600.00 after product costs and ads.
- Break-even ROAS
- 2.50x
- Target ROAS (10% profit)
- 3.33x
- Profit after ads
- $600.00
- Profit as % of revenue
- 15%
- Cost per order
- $20.00
- Break-even cost per order
- $32.00
- Average order value
- $80.00
- Most you could spend and break even
- $1,600.00
Show the math
- ROASRevenue ÷ ad spend$4,000.00 ÷ $1,000.00 = 4.00x
- Break-even ROAS1 ÷ gross margin1 ÷ 0.40 = 2.50x
- Target ROAS1 ÷ (gross margin − profit goal)1 ÷ (0.40 − 0.10) = 3.33x
- Profit after adsRevenue × gross margin − ad spend$4,000.00 × 0.40 − $1,000.00 = $600.00
- Cost per orderAd spend ÷ orders$1,000.00 ÷ 50 = $20.00
- Break-even cost per orderAverage order value × gross margin$80.00 × 0.40 = $32.00
01 — What each number means
Eight numbers from four inputs
Spend and revenue give you ROAS. Margin, orders and a profit goal unlock the rest.
ROAS
Revenue divided by ad spend. A 4x ROAS means every $1 in ads brought in $4 in sales.
Break-even ROAS
The ROAS where ads pay for themselves and nothing more: 1 divided by your gross margin.
Target ROAS
The ROAS that leaves you a set profit after ads: 1 divided by your margin minus your profit goal.
Profit after ads
What’s left after product costs and ad spend: revenue times margin, minus ad spend.
Profit as % of revenue
Profit after ads divided by revenue. Compare it with your profit goal.
Cost per order
Ad spend divided by orders. Also called CPA, or cost per acquisition.
Break-even cost per order
The most one order can cost in ads before you lose money: average order value times margin.
Most you could spend
Revenue times margin. Spend more than this for the same sales and the ads lose money.
02 — Break-even ROAS by margin
What ROAS you need at your margin
Break-even ROAS is 1 divided by your gross margin. The lower your margin, the higher the ROAS you need just to cover costs.
Break-even ROAS at three margins
4.00x
25% margin
2.50x
40% margin
1.67x
60% margin
Gross margin
Break-even ROAS
ROAS for 10% profit
20%
5.00x
10.00x
25%
4.00x
6.67x
30%
3.33x
5.00x
40%
2.50x
3.33x
50%
2.00x
2.50x
60%
1.67x
2.00x
70%
1.43x
1.67x
80%
1.25x
1.43x
03 — How to calculate ROAS
Work it out by hand in four steps
One worked example: $1,000 in ad spend, $4,000 in revenue and a 40% gross margin.
1. Add up your ad spend
Pick one period, like last month. Use one channel or all of them, but keep it the same each time. Example: $1,000.
2. Find the revenue those ads drove
Take it from your ad platform or GA4, and use the same source every time you compare. Example: $4,000.
3. Divide revenue by ad spend
ROAS = revenue ÷ ad spend. $4,000 ÷ $1,000 = 4x, which you can also write as 4:1 or 400%.
4. Compare it with break-even ROAS
Break-even ROAS = 1 ÷ gross margin. At a 40% margin, that’s 1 ÷ 0.40 = 2.5x. At 4x you’re above it: $4,000 × 0.40 − $1,000 = $600 profit after ads. To keep 10% of revenue as profit, aim for 1 ÷ (0.40 − 0.10) = 3.33x.
04 — ROAS vs other ad metrics
Which metric answers which question
ROAS is one of several ways to judge ads. Here’s what each one measures and how to work it out.
ROAS
Revenue per $1 of ad spend.
Ad revenue ÷ ad spend
ROI
Profit per $1 of ad spend, after product costs.
(Revenue × margin − ad spend) ÷ ad spend
POAS
Gross profit per $1 of ad spend. Above 1 means the ads made money.
Gross profit from ads ÷ ad spend
MER
Total store revenue per $1 of all marketing spend, across every channel.
Total revenue ÷ total marketing spend
CPA
What one order costs in ads.
Ad spend ÷ orders
05 — ROAS questions
ROAS questions, answered
Short answers to common questions about ROAS and this calculator.
What is ROAS?
ROAS stands for return on ad spend. It’s the revenue your ads brought in divided by what you spent on them. If $500 in ads drove $2,000 in sales, your ROAS is 4x, or 400%.
How do you calculate ROAS?
Divide revenue from ads by ad spend: ROAS = revenue ÷ ad spend. You can write it as a multiple (4x), a ratio (4:1) or a percent (400%). They all mean the same thing.
What is a good ROAS?
It depends on your margin, so there’s no single number. At a 60% gross margin you break even at 1.67x. At 25% you need 4x just to cover costs. Work out your break-even ROAS first, then set a target above it.
What is break-even ROAS?
The ROAS where your ads pay for themselves and nothing more. It’s 1 divided by your gross margin as a decimal. A 40% margin gives a break-even ROAS of 1 ÷ 0.40 = 2.5x.
How do I find my target ROAS?
Pick the profit you want to keep after ads, as a percent of revenue. Then target ROAS = 1 ÷ (gross margin − profit goal). With a 40% margin and a 10% goal, that’s 1 ÷ 0.30 = 3.33x. Google Ads asks for target ROAS as a percent, so you’d enter 333%.
Is ROAS the same as ROI?
No. ROAS uses revenue, so it ignores what your products cost. ROI uses profit. A 4x ROAS at a 20% margin loses money, because you need 5x to break even.
Why is my ad platform’s ROAS higher than my store’s numbers?
Each platform uses its own attribution rules, like view-through conversions and long click windows, so more than one platform can take credit for the same sale. Pick one source, like GA4 or your store’s sales report, and use it every time you compare.
Should revenue include shipping and tax?
Leave out sales tax, since it isn’t yours to keep. For shipping, be consistent: if revenue includes what customers pay for shipping, include your shipping costs when you work out your margin.
How do I share my results?
Copy share link gives you a link that opens this calculator with your numbers filled in. Copy results gives a short text summary for a message or report. Nothing is saved on a server. Your numbers live only in the link.
Is this ROAS calculator free?
Yes. It’s free, there’s no sign-up, and it works on your phone.
✦ ROAS below break-even?
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