Ads & ROAS

ROAS Calculator (Return on Ad Spend)

Calculate actual ROAS from ad spend and revenue, and compare it to your break-even ROAS to see if a campaign is profitable.

Inputs

Revenue from orders attributed to this campaign $ Please enter a valid number.
What you spent on the campaign $ Please enter a valid number.
From the break-even ROAS calculator (optional) x Please enter a valid number.

Results

ROAS —
Profit per ad dollar —
Status vs break-even —
Margin above break-even —

All calculations run in your browser. Nothing is sent to a server. Last updated: 2026-07-19 · Formula verified against published sources (see below).

Formula
ROAS = Ad revenue ÷ Ad spend

What ROAS tells you

ROAS (Return on Ad Spend) is revenue divided by ad spend. A ROAS of 3× means you got $3 in revenue for every $1 in ad spend. It's a ratio — useful, but only meaningful compared to your break-even ROAS.

The formula

ROAS = ad revenue ÷ ad spend

ROAS is not profit

The biggest misconception about ROAS: a 3× ROAS does not mean 3× profit. It means you got $3 in revenue for $1 in ads. You still have to pay product cost, shipping, payment fees, and returns out of that $3. If your non-ad costs are 60% of revenue, a 3× ROAS gives you only 7% net profit.

Always compare ROAS to break-even ROAS. A 2× ROAS on a product with 2.16× break-even is losing money. A 2× ROAS on a product with 1.5× break-even is profitable. The number alone tells you nothing.

Worked example

InputValue
Ad revenue (attributed)$2,000.00
Ad spend$600.00
Break-even ROAS2.16×
ROAS3.33×
Profit per ad dollar$2.33
Margin above break-even+54.2%
StatusProfitable (20%+ above break-even)

This campaign is solidly profitable. Scale slowly — watch for ad fatigue and rising CPMs as you scale.

Frequently asked questions

What's a "good" ROAS?
It depends entirely on your break-even ROAS. A general rule: aim for 20–30% above break-even before calling a campaign profitable. So if break-even is 2.0×, target 2.4–2.6×. If break-even is 4.0×, target 4.8–5.2×.
Should I use attributed revenue or last-click revenue?
Each platform (Facebook, Google, TikTok) attributes differently. Last-click tends to over-credit the last touch. Use whatever your ad platform reports, but be consistent — comparing Facebook last-click to Google data-driven is apples to oranges.
My ROAS dropped from 3× to 2×. What happened?
Common causes: ad fatigue (refresh creative), audience saturation (you've shown the ad to everyone in your audience), rising CPMs (more competitors entered the auction), or scaling too fast (budget spikes hurt performance). Cut budget 20%, refresh creative, and watch for 2–3 days.
Not financial advice. This calculator is a math tool, not financial advice. Profit margins, ad spend, and business decisions depend on your specific situation. Consult a licensed accountant or financial advisor before making material business decisions.

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