ROAS Calculator
Calculate return on ad spend and the break-even ROAS your margin requires.
What the ROAS Calculator does
Return on ad spend divides revenue by advertising cost. It is the standard advertising metric, but it measures revenue rather than profit — which is why the break-even ROAS implied by your gross margin matters more than the raw number.
Formula
ROAS = Revenue ÷ Ad spendBreak-even ROAS = 1 ÷ Gross marginNet profit = Revenue × Gross margin − Ad spend
Inputs explained
| Input | Unit | Required | Notes |
|---|---|---|---|
| Revenue from ads | selected currency | Yes | Accepts more than 0. |
| Ad spend | selected currency | Yes | Accepts more than 0. |
| Gross margin | % | Optional | Optional — calculates break-even ROAS and true profit. |
| Currency | one of 10 options | Optional | — |
How to use it
- Choose Currency.
- Enter Revenue from ads and Ad spend.
- Optionally add Gross margin.
- Select Calculate.
Worked example
$48,000 revenue from $12,000 of ads at a 45% gross margin.
- Revenue
- 48000
- Spend
- 12000
- Margin
- 45
ROAS 4:1 against a 2.22:1 break-even — gross profit $21,600, net $9,600 after ad spend.
Frequently asked questions
What ROAS should I target?
Whatever exceeds your break-even, which depends entirely on gross margin. A 70% margin business breaks even at 1.43:1; a 25% margin business needs 4:1.
What is the difference between ROAS and ROI?
ROAS uses revenue and only counts ad spend. Marketing ROI uses profit and includes all marketing costs, so it is the more honest measure.