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ROAS calculator
Revenue divided by ad spend. Pick the one you want and fill in the other two — then work out, below, the ROAS you actually need to break even, which is the number that decides whether a campaign is worth running.
- ROAS
- = revenue ÷ ad spend
- revenue
- = ROAS × ad spend
- ad spend
- = revenue ÷ ROAS
Solve for
Revenue attributed to the campaign, before cost of goods.
What the campaign cost over the period you are looking at.
ROAS
1.80×
Return on ad spend
Target: above 1.67× first order · above 0.93× lifetime — profitable on the first order
Assumes a typical e-commerce shop — set your own economics ↓
1.80×=$9,000.00÷$5,000.00
Your campaign, end to end
Every metric is two of these five numbers, divided. Follow a line to see which two. Open one and your campaign comes with you — fill a gap there and the rest fill in here.
What should these numbers be?
Not what a benchmark table says — those blend other businesses’ margins and customer values, which is why no two agree. Enter your own and every metric gets the range your economics can actually afford.
Revenue from a first conversion — order value for a shop, deal value × close rate for lead gen.
What is left of that revenue after cost of goods, shipping and fees.
Lifetime revenue ÷ the first order. Leave empty to judge on first orders alone.
- CPMunder $10.80 to profit on the first order · under $19.44 to break even over a lifetime
Yours is $10.00 — profitable on the first order.
- CTRabove 0.93% to profit on the first order · above 0.51% to break even over a lifetime
Yours is 1.00% — profitable on the first order.
- CVRabove 2.78% to profit on the first order · above 1.54% to break even over a lifetime
Yours is 3.00% — profitable on the first order.
- CPCunder $1.08 to profit on the first order · under $1.94 to break even over a lifetime
Yours is $1.00 — profitable on the first order.
- CPAunder $36.00 to profit on the first order · under $64.80 to break even over a lifetime
Yours is $33.33 — profitable on the first order.
- ROASabove 1.67× to profit on the first order · above 0.93× to break even over a lifetime
Yours is 1.80× — profitable on the first order.
How ROAS is calculated
Divide revenue attributed to the campaign by what the campaign cost. $9,000 from $5,000 of spend is a 1.8× return on ad spend, sometimes written 180% or 1.8:1 — the same number in different clothes.
Read backwards it becomes a planning tool: the revenue a budget has to produce to hit a target ROAS, or the spend a revenue target supports. Switch what the calculator solves for at the top.
ROAS is revenue, not profit
A 3× ROAS sounds healthy and can still lose money. The revenue in the numerator is gross: it has not paid for the goods, the shipping, the payment processing or the returns. Whether 3× is good depends entirely on what is left after those, which is why break-even ROAS — above — is the more decision-shaped number.
The other thing ROAS hides is where the revenue came from. Platform-attributed revenue counts sales the platform believes it caused, including view-through, and it double-counts across platforms when several claim the same order. If the sum of your channels’ attributed revenue exceeds what your order system recorded, the difference is attribution, not growth.
FAQs
Frequently Asked Questions
How do you calculate ROAS?
Divide the revenue a campaign produced by what you spent on it. $9,000 in revenue from $5,000 of ad spend is 9,000 ÷ 5,000 = 1.8× return on ad spend.
What is the ROAS formula?
ROAS = revenue ÷ ad spend. Rearranged, revenue = ROAS × ad spend, and ad spend = revenue ÷ ROAS. Pick which of the three you want at the top of the calculator; the other two stay editable.
What is break-even ROAS?
The return at which a campaign stops losing money — one divided by your gross margin. At a 40% margin you need 2.5× just to cover the cost of what you sold; at 25% you need 4×. It is the honest floor for a target, and it is why two brands running the same 3× can be in completely different positions.
Is ROAS the same as ROI?
No. ROAS divides revenue by ad spend and ignores every other cost. ROI is profit over total investment, so it subtracts the cost of goods and everything else before dividing, and it counts costs beyond advertising. ROAS is the media-buying number; ROI is the business one. A campaign can have a good ROAS and a negative ROI.
What is a good ROAS?
Anything comfortably above your break-even, which depends on your margin rather than on your industry. A published cross-industry average — you will see 2× and 4× quoted freely — tells you nothing about whether your own campaign pays for itself, because it knows nothing about your cost of goods. Work out break-even from your margin above, then set a target with enough headroom over it to absorb returns and a bad week.
Should I use blended ROAS or platform ROAS?
Both, for different questions. Platform-reported ROAS is useful for comparing campaigns inside one account, where the attribution bias is at least consistent. Blended ROAS — total revenue over total ad spend, taken from your own order data — is the one that reconciles with the P&L, and it is the one to use when deciding whether to spend more in aggregate. If the two disagree sharply, trust the blended figure.
How do I improve ROAS?
Only three things move it: pay less for the traffic, convert more of it, or raise what an order is worth. The first two are the funnel above — cheaper impressions, better click-through, a landing page that converts. The third is pricing, bundling and repeat purchase, and it is usually the most durable. Chasing ROAS by cutting spend on the campaigns that scale is the common mistake: it raises the ratio and lowers the profit.
Is it free, and do you keep what I type?
Free, with nothing to sign up for. The arithmetic runs in your browser — typing a number makes no server request, and there is no store of what visitors enter. Your numbers are written into the page URL so you can bookmark or share the result, which also means they travel inside any link you send.
