📣 Return on Ad Spend (ROAS) Calculator
Enter what you spent on an ad campaign and the revenue it generated to calculate ROAS.
How ROAS is calculated
Revenue divided by spend, shown as a ratio and as the same figure in per cent:
ROAS = revenue generated / ad spend
ROAS % = ROAS × 100
break-even ROAS = 1 / gross marginThe defaults, $1,000 of spend against $4,500 of revenue, give 4.50 : 1 and 450.0%. Spend must be above zero; revenue may be zero, which returns 0.00 : 1. The page reads 4:1 as strong, 2:1 to 4:1 as break-even to modestly profitable, and below 2:1 as likely unprofitable.
Reading the number honestly
- The Revenue minus Spend line is not profit. It is $3,500 in the default case, but that ignores what the goods cost you. At a 40% gross margin, $4,500 of revenue leaves $1,800, so the campaign actually cleared $800.
- Your break-even ROAS depends on margin. At 40% margin it is 1 / 0.40 = 2.5 : 1. At 20% margin it is 5 : 1, and the campaign above is barely ahead rather than excellent.
Frequently asked questions
What is a good ROAS?
Whatever beats 1 divided by your gross margin. On a 30% margin you need 3.33 : 1 just to cover the product, and more than that to cover overhead. There is no industry number that answers this for you.
What is the difference between ROAS and ROI?
ROAS divides revenue by ad spend and never subtracts anything. ROI subtracts costs first, so it can be negative. A 4:1 ROAS is not a 300% return unless your product costs nothing to make.
Why does my ad platform report more revenue than my books show?
Platforms credit themselves for any sale inside their attribution window, including buyers who would have come anyway, and two platforms can claim the same order. Adding up per-channel revenue usually overshoots your real total, which inflates every ROAS you calculate from it.