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ROAS Calculator

Calculate Return on Ad Spend (ROAS), profit margins, break-even ROAS, and advertising campaign efficiency.

Campaign inputs

$
$
%

Return on ad spend (ROAS)

400.00%

4.00x revenue multiple

Net profit after ad spend and COGS

$2,000.00

Revenue minus ad spend minus cost of goods sold

Break-even ROAS

200.00%

Minimum 2.00x to cover margin

Calculation

Open to see each step from your inputs to the result.

Revenue breakdown

  • Net profit$2,000.0025.0%
  • Ad spend$2,000.0025.0%
  • Cost of goods sold$4,000.0050.0%
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Return on ad spend (ROAS) explained

Return on ad spend (ROAS) measures how much revenue your advertising generates for every dollar spent. E-commerce brands, paid search teams, and performance marketers use ROAS to compare campaigns, channels, and creative tests. Unlike revenue-only ROI, this calculator also estimates net profit after ad spend and cost of goods sold (COGS).

For campaign-level ROI without margin adjustments, compare with the marketing ROI calculator. For retail gross margin on inventory, use the GMROI calculator.

ROAS and break-even formulas

ROAS (%)=RevenueAd Spend×100\mathrm{ROAS\ (\%)} = \frac{\text{Revenue}}{\text{Ad Spend}} \times 100
Net Profit=Revenue−Ad Spend−COGS\text{Net Profit} = \text{Revenue} - \text{Ad Spend} - \text{COGS}
Break-Even ROAS=100Profit Margin (%)×100\text{Break-Even ROAS} = \frac{100}{\text{Profit Margin (\%)}} \times 100

COGS is estimated as revenue multiplied by one minus the profit margin percentage. Break-even ROAS tells you the minimum ROAS needed to cover product costs after advertising, assuming the margin percentage reflects true gross profit on attributed sales.

Worked example

A campaign spends $2,000 on ads and generates $8,000 in revenue with a 50% profit margin. ROAS = ($8,000 ÷ $2,000) × 100 = 400%, or 4.0x. COGS = $8,000 × (1 − 0.50) = $4,000. Net profit = $8,000 − $2,000 − $4,000 = $2,000. Break-even ROAS = (100 ÷ 50) × 100 = 200%, or 2.0x.

Frequently asked questions

What is a good ROAS?
Benchmarks vary by industry and margin. A 4x ROAS (400%) is strong for high-margin digital products but may be unprofitable for low-margin retail after COGS and fulfillment. Always compare ROAS to your break-even threshold.
How is ROAS different from ROI?
ROAS divides revenue by ad spend. ROI divides profit by investment. A campaign can show high ROAS but negative profit if margins are thin or attribution overstates revenue.
What is break-even ROAS?
Break-even ROAS is the minimum return needed to cover product costs given your gross margin. With a 50% margin, break-even ROAS is 200% (2.0x). Below that level, each incremental dollar of ad spend loses money after COGS.
Should I use revenue or profit for ROAS?
Platforms often report revenue ROAS from pixel or conversion data. Profit-adjusted analysis subtracts COGS and ad spend to show whether campaigns truly add to the bottom line.

Resources and references

The formulas and methods in this calculator were checked against these independent sources.