ROAS Calculator
Calculate your Return on Ad Spend, find the revenue needed to hit a target ROAS, or compare ROAS vs ROI to see if your campaigns are truly profitable. Works with any currency.
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How to Use This Calculator
Tab "Calculate ROAS"
Enter the revenue generated by your ads and the total ad spend. The calculator returns your ROAS as a ratio (e.g., 5×) and a percentage, plus a performance rating from "losing money" to "exceptional."
Tab "Target ROAS"
Enter your target ROAS and either your ad budget or expected revenue. The calculator tells you how much revenue you need to hit your target (given a budget), or the maximum you can spend (given a revenue figure). Use this to plan campaigns before they launch.
Tab "ROAS vs ROI"
Enter revenue, ad spend, and cost of goods sold (COGS). The calculator computes both ROAS (top-line) and ROI (bottom-line), shows your profit margin, and calculates the break-even ROAS. This tab reveals whether your high ROAS is actually generating profit or just covering costs.
The Formulas
ROAS = Revenue from Ads / Ad Spend
ROAS percentage:
ROAS % = ((Revenue - Ad Spend) / Ad Spend) × 100
ROI (Return on Investment):
ROI = (Revenue - COGS - Ad Spend) / Ad Spend
Profit margin:
Margin = (Revenue - COGS) / Revenue
Break-even ROAS:
Break-even ROAS = 1 / Profit Margin
Target ROAS — required revenue:
Required Revenue = Target ROAS × Ad Spend
Target ROAS — max budget:
Max Budget = Expected Revenue / Target ROAS
All calculations are universal and pre-tax. No platform-specific attribution models are applied. Results are estimates.
Worked Examples
Example 1 — E-commerce campaign: $50K revenue, $10K spend
An online store runs a Google Ads campaign generating $50,000 in revenue on $10,000 in ad spend.
Every $1 spent on ads returns $5 in revenue. At 5×, this campaign is well above average. But revenue is not profit — use the ROAS vs ROI tab to factor in COGS.
Example 2 — Target ROAS planning: 4× with $5K budget
A marketing team has a $5,000 ad budget and wants to achieve at least 4× ROAS.
The campaign needs to generate at least $20,000 in revenue to hit the 4× target. If historical conversion data suggests this is achievable, the campaign is worth running.
Example 3 — The margin trap: 5× ROAS with 20% margin
A brand has 5× ROAS but slim margins. Revenue is $50,000, ad spend is $10,000, and COGS is $40,000 (80% of revenue, leaving only 20% margin).
5× ROAS but 20% margin means break-even ROAS = 5×. Making ZERO profit! The impressive ROAS number masks the reality: every dollar of ad-generated revenue barely covers costs. To actually profit, this brand needs either higher ROAS (more efficient ads) or better margins (lower COGS).
Understanding ROAS
What Is ROAS?
ROAS (Return on Ad Spend) measures how much revenue your advertising generates relative to its cost. It is the primary efficiency metric for paid media campaigns across Google Ads, Meta Ads, TikTok Ads, and all other platforms. A ROAS of 3× means every $1 in ad spend produces $3 in revenue.
ROAS vs ROI: The Critical Difference
ROAS measures top-line revenue — it ignores the cost of goods, shipping, overhead, and everything else. ROI measures bottom-line profit after all costs. A campaign with high ROAS can have negative ROI if margins are thin. Always check both before calling a campaign "profitable."
Break-Even ROAS
Break-even ROAS tells you the minimum ROAS needed to cover your costs. The formula is simple: 1 / Profit Margin. If your margin is 50%, you break even at 2× ROAS. If your margin is 20%, you need 5× ROAS just to break even. This is why margin-aware ROAS targets are essential for profitable advertising.
ROAS Benchmarks by Industry
General benchmarks: e-commerce typically targets 3-5×, SaaS/subscription businesses can be profitable at 2-3× (due to high LTV), lead generation often works at 5-10×, and brand awareness campaigns may accept 1-2×. However, the "right" ROAS depends entirely on your profit margins. A 70% margin business is profitable at 1.5× ROAS, while a 10% margin business needs 10× just to break even.
How to Improve ROAS
Focus on three levers: (1) better targeting — narrow audiences to higher-intent users, (2) better creative — improve ad copy, images, and landing pages to increase conversion rates, and (3) better economics — increase average order value or reduce COGS to improve margins. Small improvements across all three compound into significantly better ROAS.