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View all 4 tools →ROAS Calculator
Work out return on ad spend, find the break-even ROAS your margin demands, and set a target ROAS that keeps the profit you want.
ROAS calculator
Sales the ads brought in
Share of each sale left after product and order costs, before ad spend. Add it to see break-even, profit and ROI.
Add your number of orders
For order value and cost per order
Leave the optional fields blank to skip them.
Your ROAS
4x
$20,000 ÷ $5,000
Above break-even
About $0.60 of profit for every $1 of ad spend, after paying for the ads. Break-even is 2.5x.
Also worked out
- ROAS as a percentageas Google Ads shows it
- 400%
- Revenue per $1 of ad spend
- $4.00
- Ad spend as a share of revenueACoS on Amazon
- 25%
- Break-even ROAS1 ÷ margin
- 2.5x
- Profit after ad spend
- $3,000
- ROI on ad spendprofit ÷ ad spend
- 60%
- ROAS can fall bybefore you lose money
- 37.5%
ROAS
| Measure | ROAS |
|---|---|
| Your ROAS | 4x |
| Break-even | 2.5x |
ROAS, or return on ad spend, is the revenue an ad campaign brings back for every dollar spent on it. This free ROAS calculator gives you your ROAS from revenue and ad spend, then goes on to the two numbers that tell you whether it is enough: your break-even ROAS, and the target ROAS that leaves the profit you want. Add your margin and it also shows profit, ROI and how far your ROAS can fall before the campaign loses money.
Reviewed by Bunny Corner TeamHow we source our numbers
How it works
- Choose what you want to work out. Calculate ROAS from revenue and ad spend, find the break-even ROAS your margin demands, or set a target ROAS that keeps a profit you choose.
- Enter your numbers. Revenue and ad spend are enough for a ROAS. Add your profit margin, the share of each sale left before ad spend, and the calculator also tells you whether the campaign is above or below break-even. In break-even mode you can give a price and costs instead of a margin.
- Read the answer and its working. The headline figure sits above the arithmetic behind it, so you can check it by hand, and the chart sets your ROAS against break-even. Copy a summary or a shareable link if you need to send it on.
Break-even ROAS at different profit margins, and the ROAS needed to keep 10% of revenue as profit
| Profit margin | Break-even ROAS | ROAS to keep 10% profit |
|---|---|---|
| 10% | 10x | Not possible |
| 20% | 5x | 10x |
| 25% | 4x | 6.67x |
| 30% | 3.33x | 5x |
| 40% | 2.5x | 3.33x |
| 50% | 2x | 2.5x |
| 60% | 1.67x | 2x |
| 80% | 1.25x | 1.43x |
The ROAS formula
ROAS is revenue divided by ad spend. A campaign that spent $5,000 and brought in $20,000 in revenue has a ROAS of 4, usually written 4x or 4:1: $4 of revenue for every $1 spent.
ROAS = revenue ÷ ad spend
Google Ads describes the goal as the average conversion value, for example revenue, you would like to get for each dollar you spend on ads. It expresses ROAS as a percentage, so a 4x ROAS is 400%: multiply the ratio by 100.
Use only the revenue the ads are credited with, and the ad spend for the same period. Each ad platform counts revenue by its own attribution rules, so a ROAS reported by one platform is not automatically comparable with another.
How to calculate ROAS, step by step
Calculating ROAS takes two figures and one division.
- Take the revenue attributed to your ads for a set period, such as a month or a single campaign.
- Add up what you spent on those ads over the same period.
- Divide the revenue by the ad spend. Multiply by 100 if you want it as a percentage.
A campaign with $20,000 of revenue from $5,000 of ad spend gives 20,000 ÷ 5,000 = 4, or 400%. In a spreadsheet that is =B2/C2 with revenue in B2 and ad spend in C2, and =B2/C2*100 for the percentage.
ROAS vs ROI: why a high ROAS can still lose money
ROAS counts revenue. ROI counts profit. A campaign can have a healthy-looking ROAS and still lose money, because revenue is not what you keep.
ROI on ad spend = (revenue × margin − ad spend) ÷ ad spend
Take the 4x campaign above at a 40% margin. It brings back $20,000 of revenue, of which $8,000 is left after the cost of the goods. Take off the $5,000 of ads and $3,000 is profit, a 60% return on the ad spend. At a 20% margin the same 4x leaves $4,000 before ads and loses $1,000.
That is why this calculator asks for a margin. The ROAS alone cannot tell you whether the campaign is worth running.
Break-even ROAS
Break-even ROAS is the ROAS at which the ads pay for themselves and nothing more. It is one divided by your profit margin: if you keep 40% of each sale, every $1 of ad spend must bring back $2.50 of revenue just to cover itself.
break-even ROAS = 1 ÷ profit margin
Use the margin before ad spend: the price less the cost of the goods, shipping, payment fees, returns and any other cost that comes with each order. If ad spend is already inside the margin, the answer will be wrong.
The same margin gives you a break-even cost per order: your average order value multiplied by the margin. If the average order is $50 at a 40% margin, you can pay up to $20 to win an order before it loses money. The table on this page shows the break-even at other margins.
What is a good ROAS?
A good ROAS is one that is above your break-even ROAS by enough to leave the profit you want. There is no single number that is good for everyone, and this page quotes none, because the answer depends on your margin.
A business with a 60% margin breaks even at 1.67x. One with a 20% margin needs 5x before it earns anything, so a ROAS that would be excellent for the first business would lose money for the second. Work out your own break-even in break-even mode, then set the target above it.
One caution: a first order that lands below break-even is not always a loss. If customers come back and buy again, the campaign can pay back over time. That is a judgement about your own repeat-purchase rate, which only you know.
Target ROAS: the ROAS that leaves the profit you want
Target ROAS is the ROAS you need to hit to keep a profit you choose. Subtract that profit, as a share of revenue, from your margin, and divide one by what is left: the part of each sale that can go to ads.
target ROAS = 1 ÷ (profit margin − profit you want to keep)
With a 40% margin and a goal of keeping 10% of revenue as profit, 30% of each sale can go to ads, so the target ROAS is 1 ÷ 0.30, or 3.33x. Setting the profit to 0% gives the break-even ROAS.
Target ROAS is also the name of a bidding setting in Google Ads, where you enter the value you want back per dollar of spend as a percentage: a 500% target means $5 of conversion value for every $1. Work out your own target here first, and enter a figure at or above your break-even.
ROAS and ACoS
ACoS, advertising cost of sales, is ROAS turned upside down. Amazon Ads defines it as ad spend divided by ad revenue, multiplied by 100, and describes ROAS as its inverse.
ACoS = ad spend ÷ ad revenue × 100
A 4x ROAS is a 25% ACoS: the ads cost 25 cents of every dollar of revenue. Amazon Ads reports ACOS and most other advertising tools report ROAS, but the two carry the same information, and the calculator shows both.
What ROAS does not tell you
ROAS is a ratio of two numbers you choose to count, so it is only as good as those numbers. It ignores what else the sale cost, and it says nothing about whether the customer was new or would have bought anyway.
It also depends on attribution. The revenue a platform credits to its own ads can differ from what your own sales records show, so compare ROAS within one platform and over time, and check it against your total revenue. Use it as one number alongside margin and profit, not instead of them.
Frequently asked questions
What is ROAS?
ROAS stands for return on ad spend: the revenue an ad campaign brings in for every dollar spent on it. A campaign that spent $5,000 and returned $20,000 has a ROAS of 4, or 4x, meaning $4 of revenue per $1 of ads. It measures revenue, not profit, so on its own it cannot say whether a campaign is worth running.
How do you calculate ROAS?
Divide the revenue attributed to your ads by what you spent on them, over the same period. Revenue of $20,000 from $5,000 of ad spend gives 20,000 ÷ 5,000 = 4, or 4x. The calculator does this in Calculate ROAS mode and shows the working under the answer, so you can check it by hand.
What is the ROAS formula?
ROAS = revenue ÷ ad spend. To get it as a percentage, as Google Ads shows it, multiply by 100, so 4x is 400%. It rearranges into ad spend = revenue ÷ ROAS and revenue = ad spend × ROAS, which is how the target ROAS mode works out the revenue a budget must bring back.
How do you calculate ROAS as a percentage?
Divide revenue by ad spend and multiply by 100. Revenue of $20,000 from $5,000 of ads is 4, which is 400%. Google Ads describes target ROAS as a percentage in the same way: a 500% target means $5 of conversion value for every $1 spent. The calculator shows both forms.
What is break-even ROAS?
Break-even ROAS is the return at which a campaign covers its ad spend and makes no profit, and below which it loses money. It is one divided by your profit margin: at a 40% margin it is 2.5x. Break-even mode calculates it from a margin, or from a price and the costs of an order.
How do you calculate break-even ROAS?
Divide 1 by your profit margin written as a decimal. A 40% margin gives 1 ÷ 0.40 = 2.5x, so each $1 of ad spend must bring back $2.50 of revenue. Use the margin before ad spend, after the cost of goods, shipping, fees and returns, or the answer will come out too low.
What is a good ROAS?
A good ROAS is one comfortably above your break-even ROAS, since that is the point where a campaign starts making money. It varies with margin: 2x only breaks even at a 50% margin and loses money at 20%. This calculator quotes no average, because none applies to you. Use break-even mode to find yours.
What is the difference between ROAS and ROI?
ROAS is revenue divided by ad spend; ROI is profit divided by ad spend. ROAS ignores what the sale cost you, so a campaign can have a decent ROAS and still lose money. At a 40% margin, a 4x ROAS is a 60% return on ad spend. Add your margin in Calculate ROAS mode to see both.
What is target ROAS?
Target ROAS is the ROAS you need in order to keep a chosen profit. It is one divided by your margin minus the profit you want, both as a share of revenue: a 40% margin and a 10% profit goal give 1 ÷ 0.30, or 3.33x. In Google Ads it is also a bidding setting, entered as a percentage.
What ROAS do I need to make a profit?
You need a ROAS above your break-even ROAS, which is 1 divided by your margin. At a 25% margin that is 4x, at 50% it is 2x. To keep a set profit on top, use target ROAS mode. The reference table on this page lists the ROAS needed at common margins.
Is a higher ROAS always better?
Not always. A higher ROAS means more revenue per dollar of ads, but pushing it up can shrink the volume of sales, and revenue is not profit. A campaign at 3x on a large budget can earn more than one at 6x on a small budget. Judge it by profit after ads, which the calculator shows.
Can ROAS be less than 1?
Yes. A ROAS below 1 means the ads brought in less revenue than they cost: 0.5x means 50 cents of revenue per $1 spent, before any cost of the goods. Since break-even ROAS is never below 1, even at a 100% margin, any campaign under 1x loses money on that order.
What is the difference between ROAS and ACoS?
They are inverses. Amazon Ads defines ACOS as ad spend divided by ad revenue, times 100, and describes ROAS as its inverse. A 4x ROAS is a 25% ACoS. In Calculate ROAS mode the ad spend share row shows the ACoS for your numbers, next to the ROAS.
How do I work out the most I can pay per order?
Multiply your average order value by your profit margin. That is your break-even cost per order: a $50 average order at a 40% margin allows up to $20 of ad spend to win it. Add the order value in break-even mode, or the number of orders in ROAS mode.
How do I calculate ROAS in Excel or Google Sheets?
Put revenue in one cell and ad spend in another, then divide. With revenue in B2 and ad spend in C2, the ROAS is =B2/C2, and the percentage is =B2/C2*100. For break-even ROAS from a margin in D2, use =1/D2 with the margin as a decimal, such as 0.4.
Does this calculator store or send my numbers anywhere?
No. The calculation runs in your browser and nothing you enter is sent to a server. The Copy link button builds a link that carries your inputs in the address, and that link only reaches someone if you choose to share it.