MoneyTools

ROAS Calculator

Calculate return on ad spend and determine if your advertising is profitable.

Inputs

$
$
%

Results

ROAS
4.00x
Break-Even ROAS
2.00x
You need at least this to be profitable
Profit
$1,000.00
ROI
100.00%

Formula

ROAS = Revenue / Ad Spend\nBreak-Even ROAS = 1 / Gross Margin %

ROAS measures revenue generated per dollar of ad spend. Break-even ROAS tells you the minimum ROAS needed to cover product costs.

Worked Example

Ad Spend: $1,000 | Revenue: $4,000 | Gross Margin: 50% ROAS: 4.0x Break-Even ROAS: 2.0x Profit: $4,000 × 50% - $1,000 = $1,000 ROI: 100%

When to Use This Calculator

Use to evaluate the profitability of advertising campaigns. Compare ROAS against your break-even ROAS to determine if ads are profitable.

Important Assumptions

  • All revenue is attributable to the ad spend.
  • Gross margin is consistent.

Common Mistakes to Avoid

  • Looking at ROAS without considering gross margin.
  • Not accounting for customer acquisition costs beyond ad spend.

Frequently Asked Questions

What is a good ROAS?

It depends on your gross margin. A ROAS above your break-even ROAS is profitable. For 50% margins, a ROAS above 2x is profitable.

How is ROAS different from ROI?

ROAS measures revenue per ad dollar. ROI measures profit per ad dollar, accounting for product costs.

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ROI Calculator

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LTV:CAC Calculator

Calculate customer lifetime value, acquisition cost, and the LTV:CAC ratio.

Profit Margin Calculator

Calculate gross, operating, and net profit margins from your revenue data.

Methodology: This calculator uses standard financial formulas documented above. All calculation engines are unit-tested for accuracy.View full methodology
Disclaimer: This calculator provides estimates for educational purposes only. Results do not constitute financial advice.Full disclaimer