ROAS calculator

Work out ROAS, the break-even ROAS for your margin, the profit after ad spend and the maximum cost per order.

How to use

ROAS, return on ad spend, is the revenue an advertising campaign brings in divided by what it cost: ROAS = revenue ÷ ad spend. Spending 1,000 to make 4,000 in sales is a ROAS of 4, also written as 4:1 or 400%. Google Ads reports it as a ratio, but sets Target ROAS as a percentage: 5 in sales for every 1 spent is a target of 500%.

Revenue is not profit, so a ROAS above 1 does not mean a campaign pays for itself. What matters is the margin: the share of each sale left after the product, shipping and payment fees, before advertising. A campaign breaks even when revenue × margin = ad spend, so the break-even ROAS is 1 ÷ margin. With a 40% margin it is 2.5; with 25% it is 4; with 10% it is 10. Below that line, the ads cost more than the margin on the sales they bring in, so the campaign loses money.

Enter the ad spend, the revenue attributed to the ads and your margin. The calculator shows the ROAS, the break-even ROAS, the revenue needed to break even, the profit after ad spend (revenue × margin − ad spend) and the profit or loss on every 1 spent. With the number of orders it also shows the average order value, the cost per order (CPA = ad spend ÷ orders) and the maximum CPA you can afford, which is the average order value × margin.

Use amounts without VAT or sales tax on both sides, and the same period and currency for spend and revenue. The revenue is only as good as the attribution behind it: each platform credits sales by its own rules, so two platforms can both claim the same order, while purchases made after the attribution window, such as later repeat orders, are not counted. Everything is calculated in your browser.

Example

The example: spending 500 brings in 1,200 of sales, a ROAS of 2.4, but with a 30% margin the break-even ROAS is 3.33, so the campaign loses 140. Each order cost 16.67, while an average order of 40 could afford at most 12 of ad cost.

1,000 spent, 4,000 revenue, 40% margin, 50 ordersROAS 4 (400%), break-even 2.5. Profit after ads: 4,000 × 0.40 − 1,000 = 600. Average order 80, CPA 20, maximum CPA 32.
500 spent, 1,200 revenue, 30% margin, 30 ordersROAS 2.4 looks healthy, but the break-even ROAS is 3.33, so the campaign loses money: 1,200 × 0.30 − 500 = −140. CPA 16.67 against a maximum of 12.
40% marginBreak-even ROAS 1 ÷ 0.40 = 2.5: every 1 of ad spend must bring in 2.50 of sales just to cover itself.
Target ROAS of 500% in Google Ads5 in sales for every 1 spent: if the campaign reaches it, profitable at any margin above 20%.

Frequently asked questions

What is a good ROAS?

One above your break-even ROAS, by enough to leave the profit you want. A ROAS of 3 is comfortably profitable for a business with a 60% margin and a loss for one with a 25% margin, which is why a single industry average says little.

What is the difference between ROAS and ROI?

ROAS divides revenue by ad spend. ROI divides profit by the investment. If you count only the ad spend as the investment, the calculator's profit per 1 spent is that ROI: 0.60 means each 1 spent came back with 0.60 of profit on top, an ROI of 60%.

Why does my ad platform show a higher ROAS than my own figures?

Platforms attribute sales by their own rules, often crediting a sale to an ad that was clicked, or only viewed, days earlier, and two platforms can each claim the same order. Compare with the revenue in your shop's records before deciding.

Should the margin include advertising?

No. Enter the margin before advertising: the calculator subtracts the ad spend itself. Including it would count the cost twice.