ROAS Calculator
ROAS (Return on Ad Spend) shows how many times your ad spend comes back as revenue. Enter your ad budget, the revenue you earned, and optionally your profit margin, and we will compute ROAS, ROI percentage and your break-even point.
Frequently Asked Questions About ROAS
What is ROAS?
ROAS (Return on Ad Spend) is a marketing metric that measures how many times your ad spend returns as revenue. It is one of the most common indicators of ad performance.
How is ROAS calculated?
ROAS = Revenue from ads ÷ Ad spend. For example, 10,000 revenue on 2,000 spend equals a 5x ROAS.
What is a good ROAS?
It depends on your industry and margin. Rule of thumb: your break-even ROAS is the inverse of your profit margin. At a 25% margin, break-even ROAS is 4x — aim above that for profit.
ROAS vs ROI — what is the difference?
ROAS compares revenue to spend; ROI compares net profit to spend. ROI is more realistic because it factors in product cost.
What is break-even ROAS?
The ROAS level at which you neither profit nor lose money. If your margin is 25%, you need 4x (4 in revenue per 1 spent) just to break even.
Why is ROAS not enough on its own?
ROAS measures revenue but excludes product cost, returns and operating expenses. To see true profitability, read ROAS together with margin and ROI.