ROAS Calculator (Return on Ad Spend)
Evaluate the return on your ad spend and see how effectively your campaigns generate revenue.
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Want ads managed on real break-even numbers? We set up tracking first, then test and scale.
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What does the ROAS Calculator do?
ROAS (return on ad spend) is the revenue your ads generate divided by what you spent on them. This calculator takes your ad spend and ad revenue and returns your ROAS and ACOS, then uses your gross margin to show your break-even ROAS and the profit left after ad spend.
1. How to use this roas calculator?
- 1Enter the amount you spent on ads and the revenue those ads generated in the same period.
- 2Add your gross margin so the calculator can find your break-even ROAS.
- 3Compare your ROAS with your break-even ROAS to see whether the ads make money.
What each input means
- Ad spend
- for the period
- Revenue from those ads
- for the same period
- Gross margin
- % of revenue after product cost
2. How is the roas calculator calculated?
- ROAS = ad revenue ÷ ad spend
- ACOS = ad spend ÷ ad revenue
- Break-even ROAS = 1 ÷ gross margin
- Profit after ads = ad revenue × gross margin − ad spend
- Profit ROAS = (ad revenue × gross margin) ÷ ad spend
Spending $5,000 on ads that generate $20,000 in revenue gives a ROAS of 4.00 and an ACOS of 25%. With a 45% gross margin the break-even ROAS is 2.22, gross profit is $9,000, and profit after ad spend is $4,000.
3. Who should use this tool?
- Advertisers who want to measure a campaign against their margin.
- Owners comparing Meta, TikTok and Google results.
- Anyone told to “aim for a 4x ROAS” who wants to know if that is right for them.
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Calculate POD profitROAS Calculator: frequently asked questions
What is a good ROAS?
There is no universal answer. A good ROAS is one above your own break-even ROAS, which depends on your margins. A store with a 45% margin breaks even at about 2.2x.
What is the difference between ROAS and ACOS?
They are the same information from two angles. ROAS is revenue divided by spend, while ACOS is spend divided by revenue, shown as a percentage.
Why is my ROAS good but my profit low?
ROAS ignores costs other than ads. Shipping, fees, refunds and overheads also reduce profit, so check your net profit too.
Which revenue should I use?
Use the revenue attributed to the ads, but remember that platforms often over-count. Comparing with your total store revenue over the same period helps.
Services that move these numbers
Meta Ads
Pixel and conversion tracking, then campaign creation, testing and scaling on Facebook and Instagram.
Learn more →TikTok Ads
TikTok campaigns and creative built for short-form buyers, with tracking set up first.
Learn more →Google Ads
Search and Shopping campaigns set up and optimised to bring in buyers who are ready to purchase.
Learn more →Want an expert to look at your real numbers?
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