ROAS Calculator

ROAS (return on ad spend) is revenue divided by ad spend. If a campaign brings in $8,000 of revenue from $2,000 of ad spend, ROAS is 4 — you earned $4 of revenue for every $1 spent. Multiply by 100 to express it as a percentage (400%).

It depends entirely on your gross margin, so there is no universal number. A 4× ROAS is healthy for a product with thin margins but can be break-even for one with a 25% margin. Enter your margin above to see the break-even ROAS you actually need to clear.

Break-even ROAS is the point where ad-driven revenue exactly covers the cost of the goods plus the ad spend. At a gross margin m, it equals 1 ÷ m: a 50% margin needs a 2× ROAS to break even, a 25% margin needs 4×. Anything above that is profit.

ROAS compares revenue to ad spend only, so it ignores product costs and overheads. ROI compares profit to total cost. This calculator shows both views: the plain ROAS, and the profit after your gross margin so you can see whether the campaign actually made money.