ROAS Calculator
See whether your ads earn more than they cost, after product margin.
Your numbers
Your results
ROAS Calculator by TheCalcTools
How the ROAS Calculator works
Enter the revenue attributed to the campaign and what you spent on ads.
Enter your gross margin, the share of revenue left after product cost.
ROAS above the break-even figure means the campaign makes a profit.
The formula
Worked example
Using the default values shown in the calculator:
| Revenue from ads | $15000 |
|---|---|
| Ad spend | $4000 |
| Gross margin on sales | 40 % |
- ROAS = $15,000 ÷ $4,000 = 3.75.
- At a 40% margin, break-even ROAS = 2.50.
- Profit = 15,000 × 0.40 − 4,000 = $2,000.
Result:
| ROAS | 3.75 |
|---|---|
| Break-even ROAS | 2.50 |
| Profit after ad spend | $2,000 |
| Return on ad spend (%) | 50.0% |
Frequently asked questions
What is a good ROAS?
There is no single number. A 4:1 ratio is a common target, but a 40% margin business needs at least 2.5:1 just to break even.
ROAS or ROI?
ROAS ignores product cost; ROI includes it. This tool shows both views by applying your margin.
Sources and further reading
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This calculator gives estimates for information only. Check important results independently before you rely on them. See our disclaimer.