ROAS Calculator
Calculate Return on Ad Spend (ROAS) and determine how much revenue you earn per dollar spent on advertising.
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How to use this calculator
ROAS measures how many dollars of revenue you generate for every dollar spent on ads. A ROAS of 4 means $4 revenue per $1 spent. Break-even ROAS = 1 / (1 − COGS%). Net profit factors in cost of goods and ad spend.
- 1
Enter your total ad spend and the revenue attributable to those ads from your analytics platform.
- 2
Input your cost of goods percentage to see gross and net profit after ad costs.
- 3
Set your target ROAS to instantly see whether your campaign is above or below goal.
Frequently asked questions
What is a good ROAS?
A common benchmark is 4× ROAS (400%), meaning $4 revenue per $1 ad spend. However, the minimum acceptable ROAS depends on your gross margin. If your COGS is 60%, you need at least a 2.5× ROAS to break even on ad spend.
How is ROAS different from ROI?
ROAS only compares revenue to ad spend. ROI (Return on Investment) accounts for all costs including COGS, operations, and overhead. ROAS is a marketing metric; ROI is a business profitability metric. You can have a high ROAS and still lose money if your margins are thin.
How do I calculate break-even ROAS?
Break-even ROAS = 1 / (1 − COGS%). For example, if your COGS is 40% of revenue, break-even ROAS = 1 / 0.60 = 1.67×. Any ROAS above this means your ads are contributing positively to gross profit.
ROAS Calculator — Return on Ad Spend
What Is ROAS and Why Does It Matter?
Return on Ad Spend (ROAS) is the primary metric used to evaluate advertising efficiency. It answers a simple question: for every dollar you spend on ads, how many dollars of revenue do you get back? A ROAS of 1× means you are breaking even on revenue — but almost certainly losing money once you factor in cost of goods and operating expenses. Most e-commerce businesses target 3–5× ROAS, while high-margin software businesses may be profitable at 2×. Knowing your break-even ROAS is the first step to setting meaningful campaign targets.
ROAS Targets by Industry and Business Model
ROAS benchmarks vary dramatically by vertical. E-commerce with 30–50% margins typically targets 3–5× ROAS. Subscription SaaS products with high lifetime value can profitably acquire customers at 1.5–2× ROAS. Lead-generation businesses measure ROAS in terms of lead value rather than immediate revenue. Always tie your ROAS target to your unit economics: start with your gross margin, factor in the customer lifetime value, and set a target that produces profitable growth — not just impressive top-line numbers.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →