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E-commerce Calculators

ROAS Calculator

Return on ad spend (ROAS) shows how much revenue each unit of advertising brings in. Add your gross margin to see whether that revenue actually covers the ad cost.

$
$
%

Revenue minus product cost and fees, as a % of revenue.

ROAS4×400% · $4.00 per 1 spent

Above break-even: the ads are profitable at this margin.

Gross profit before ads
$4,200.00
Profit after ads
$1,200.00
Break-even ROAS
2.86×
Step-by-step working
  1. ROAS = revenue ÷ ad spend = $12,000.00 ÷ $3,000.00 = 4×
  2. Gross profit = $12,000.00 × 35% = $4,200.00
  3. Break-even ROAS = 1 ÷ margin = 2.86×

How to use the ROAS Calculator

  1. Enter the revenue attributed to your ads and what you spent.
  2. Optionally add your gross margin.
  3. Press Calculate.

Formula

ROAS = revenue from ads ÷ ad spend

Break-even ROAS = 1 ÷ gross margin (as a decimal)

Examples

  • 12,000 revenue from 3,000 ad spend: ROAS 4×. With a 35% margin, break-even ROAS is 2.86× and profit after ads is 1,200.

Frequently asked questions

Is ROAS the same as ROI?

No. ROAS compares revenue with ad spend. ROI compares profit with the full investment, so a high ROAS can still lose money if margins are thin.

Why does my ad platform show a different ROAS?

Platforms attribute sales using their own rules and time windows. Use the same revenue figure consistently when comparing campaigns.

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