Calculators / ROAS

ROAS calculator

Enter what you spent on ads and the revenue they brought in. Add your margin to see your break-even ROAS and whether the ads actually paid.

Your numbers

$
$
%
Price minus product, fees and shipping, as % of price.

Result

ROAS
ROAS as a percentage
Break-even ROAS
Gross profit from sales
Profit after ad spend

The formulas

ROAS = revenue ÷ ad spend
Break-even ROAS = 1 ÷ gross margin
Profit after ads = revenue × gross margin − ad spend

At break-even ROAS, the profit the sales make is exactly what the ads cost. Above it, the ads make money. Below it, every sale they bring in costs more than it earns.

Worked example

A week of Meta ads costs $500 and brings in$1,750 of orders. The products have a 40% gross margin before ads.

ROAS1,750 ÷ 500 = 3.5x (350%)
Break-even ROAS1 ÷ 0.40 = 2.5x
Gross profit1,750 × 0.40 = $700
After ads700 − 500 = $200

The same 3.5x ROAS on products with a 25% margin would need 4x just to break even, and the week would have lost $62.50.

Break-even ROAS at common margins

20% margin5.0x
25% margin4.0x
33% margin3.0x
40% margin2.5x
50% margin2.0x
60% margin1.67x

Before you change a campaign

Give it enough data

A few days and a handful of orders can swing ROAS a long way. Judge a campaign on a week or more of spend, unless it is clearly burning money.

First orders and repeat orders

If customers come back and buy again, a campaign slightly below break-even on the first order can still pay over time. The customer acquisition cost calculatorshows how many orders it takes to earn back what a customer cost.

Read more

Formula and examples last checked October 9, 2026.

Questions people ask

What is a good ROAS?

One that is above your break-even ROAS by enough to leave the profit you want. A 4x ROAS is great for a store with 50% margins and a loss for a store with 20% margins. That is why this calculator asks for your margin: the useful number is how far above break-even you are, not the ROAS on its own.

Is ROAS the same as ROI?

No. ROAS compares revenue with ad spend. ROI compares profit with what you spent. A campaign can show a 3x ROAS and still lose money, because the revenue has to pay for the product, fees and shipping before anything is left over. The "profit after ad spend" line is the ROI side of it.

Which revenue number should I use?

Use revenue you can tie to the ads, from your store's own reports or the ad platform. Ad platforms tend to credit themselves with sales that other channels also touched, so if the two disagree, the store figure is usually the safer one to plan with.

What margin should I enter?

Your gross margin before ads: price minus product cost, fees, packaging and the shipping you pay, as a percentage of price. You can get it from the profit margin calculator by filling in everything except ad cost.

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