What is the ROAS formula?
ROAS equals revenue divided by advertising spend.
Paid Media Calculator
ROAS Calculator (Return on Ad Spend)
Enter your advertising spend and revenue to calculate ROAS instantly. You can also use gross margin to estimate the break-even ROAS your campaigns need to avoid losing money before other costs.
ROAS—
Revenue per 1 spent—
Optional
Break-even ROAS
If you know your gross margin, you can estimate the minimum ROAS needed to break even.
%
What is gross margin?
Gross margin is the percentage of revenue remaining after the direct cost of providing the product or service.
Example: If something sells for 100 and costs 60 to provide, the gross margin is 40%.
Break-even ROAS—
How to calculate ROAS
ROAS stands for Return on Ad Spend. It measures how much revenue was generated for each unit of advertising spend.
ROAS = Revenue ÷ Ad Spend
If you spend 1,000 on advertising and generate 4,500 in attributed revenue, the ROAS calculation is 4,500 ÷ 1,000 = 4.50x. In other words, every 1 spent on advertising generated 4.50 in revenue.
ROAS calculation example
Ad spend2,500
Revenue10,000
ROAS4.00x
A 4.00x ROAS can also be expressed as 400% revenue relative to ad spend. Paid media platforms commonly display ROAS as a multiplier, so this calculator uses the x format.
What does a 2x, 3x or 4x ROAS mean?
2.00x ROAS
2 in revenue for every 1 spent on ads.
3.00x ROAS
3 in revenue for every 1 spent on ads.
4.00x ROAS
4 in revenue for every 1 spent on ads.
A higher ROAS is not automatically more profitable. Product margin, refunds, fulfilment costs, agency fees, discounts and other variable costs can materially change the business result.
Break-even ROAS formula
If gross margin is known, a simple break-even ROAS can be estimated from the share of revenue left after direct cost of goods or service delivery.
Break-even ROAS = 1 ÷ Gross Margin
For example, a 40% gross margin is 0.40 as a decimal. The estimated break-even ROAS is 1 ÷ 0.40 = 2.50x. A campaign below that level would not cover the direct cost assumption used in this simplified model.
Important:Break-even ROAS is only as accurate as the margin you enter. If your business needs to account for shipping, payment fees, returns, fulfilment, commissions or other variable costs, include them in the profitability model before treating the result as a true break-even target.
What is a good ROAS?
There is no universal good ROAS. A profitable target depends on your gross margin, contribution margin, customer lifetime value, repeat purchase behaviour and the role advertising plays in the wider business. A 2.5x ROAS could be excellent for one advertiser and unprofitable for another.
Use ROAS as a decision metric alongside conversion volume, CPA, margin and total business performance rather than treating one generic benchmark as the correct target for every campaign.
ROAS vs ROI
ROAS focuses specifically on advertising revenue relative to advertising spend. ROI is broader and normally compares profit with the total investment required to generate that profit. This means a campaign can report a positive-looking ROAS while the wider business economics are still weak.
Use ROAS with the rest of your paid media math
ROAS Guide
Read the ROAS Guide →Want the full ROAS formula, examples and interpretation guide?
Learn how to calculate ROAS, convert between multiplier and percentage formats, estimate break-even ROAS and avoid common profitability and attribution mistakes.
ROAS calculator FAQs
How do I calculate ROAS as a percentage?
Multiply the ROAS multiplier by 100. A 4.00x ROAS is equivalent to 400% revenue relative to ad spend.
Can I use this for Google Ads and Meta Ads?
Yes. Enter the ad spend and attributed revenue from the reporting source you are reviewing. Keep the attribution source and date range consistent when comparing campaigns.
Is ROAS the same as profit?
No. ROAS measures revenue relative to ad spend. Profit also depends on product costs and other business expenses.
What is break-even ROAS?
It is the ROAS level at which the revenue generated covers the cost assumptions included in your margin model.
Is this ROAS calculator free?
Yes. The calculator runs in your browser and does not require an ad account connection.