ROAS (Return on Ad Spend) Calculator
Calculate return on ad spend (ROAS), gross profit, ROI and break-even ROAS for your marketing or advertising campaign to gauge true profitability.
Your results
Calculation breakdown
- ROAS
- $10,000.00 ÷ $2,000.00 = 5x
- Gross profit
- $10,000.00 × 50% = $5,000.00
- ROI
- ($5,000.00 − $2,000.00) ÷ $2,000.00 = 150%
- Break-even ROAS
- 1 ÷ 50% = 2x
Assumptions
- ROAS measures revenue generated per dollar of ad spend and ignores product cost.
- ROI accounts for gross margin and any other campaign costs beyond ad spend.
- Break-even ROAS is the minimum ROAS needed to cover cost of goods sold at your margin.
Results are estimates only and are not financial, tax, legal or credit advice.
How this calculator works
Enter your ad spend, attributed revenue and gross margin to calculate your ROAS multiple, the gross profit generated, an ROI figure that accounts for margin and other campaign costs, and the break-even ROAS you need to cover cost of goods sold.
Frequently asked questions
What's a good ROAS?
It depends on your margin — a business with a 20% margin typically needs a higher ROAS to be profitable than one with a 60% margin, which is why break-even ROAS matters more than a flat benchmark.
How is ROI different from ROAS?
ROAS is simply revenue divided by ad spend, while ROI factors in gross margin and other campaign costs to show actual profitability.
What is break-even ROAS?
It's 1 divided by your gross margin — the minimum ROAS at which your ad-generated revenue covers the cost of goods sold.
Results are estimates only and are not financial, tax, legal or credit advice.