ROAS Calculator
Work out your return on ad spend and, if you add your margin, the ROAS you need to break even and how much profit your ads actually made.
Campaign numbers
Adds cost per order and order value.
Revenue left after product costs. Adds break-even ROAS and profit.
Use the same currency for every amount.
Result
Enter your ad spend and the revenue those ads brought in.
Frequently Asked Questions
How is ROAS calculated?⌄
ROAS is revenue from ads divided by ad spend. Spending 2,000 to generate 7,500 in revenue is a ROAS of 3.75x, often written as 375%.
What is break-even ROAS?⌄
The ROAS at which ad revenue exactly covers the product costs and the ad spend, so you neither make nor lose money on those sales. It equals 1 divided by your gross margin: at a 40% margin you need a ROAS of 2.5x to break even.
What is a good ROAS?⌄
Any ROAS above your break-even point is profitable before other costs, so the right target depends on your margin, not a universal number. A business with a 70% margin can do well at 2x, while one with a 25% margin loses money below 4x.
What's the difference between ROAS and ACoS?⌄
They're two views of the same numbers. ROAS is revenue ÷ ad spend; ACoS (advertising cost of sales, common on Amazon) is ad spend ÷ revenue. A ROAS of 4x equals an ACoS of 25%.
Does the profit figure include all my costs?⌄
No. It's revenue times gross margin minus ad spend, so it covers product costs and advertising only. Shipping, fees, returns, salaries and other overheads aren't included unless you build them into the margin you enter.