Free tool · Paid ads
ROAS calculator, with your break-even.
See your return on ad spend, the return you need to break even at your margin, and what the ads actually made after their cost.
- No sign-up for the resultRun the numbers and see the answer straight away. Email only if you want the full report.
- The formula shownCalculators show the formula and a worked example, so you can check the maths.
- What to do nextEach tool reads your result and tells you the next step.
Your ROAS of 3.00x is above your break-even of 2.50x: the ads made US$1,000 after ad spend.
The question now is how far budget can grow before the return falls. Scale in steps and watch the return on each extra unit of spend, not just the average.
Next: Google Ads cost calculatorWhen the maths is healthy, the question is how far budget can grow before returns fall. A short call is the quickest way to plan it.
Book a callThe formula
ROAS = revenue from ads / ad spend. Break-even ROAS = 1 / profit margin. Profit after ads = revenue x margin - ad spend.
A worked example
You spend 5,000 on ads and they bring in 15,000 of sales. ROAS is 15,000 / 5,000 = 3x. At a 40% margin, break-even ROAS is 1 / 0.40 = 2.5x, so the ads are profitable: 15,000 x 0.40 - 5,000 = 1,000 profit after ad spend.
How to read your result
- Below your break-even ROAS, every sale from the ads loses money once product costs and ad spend are counted.
- Just above break-even, the ads are profitable but fragile: a rise in click prices can wipe out the profit.
- Comfortably above break-even, the question becomes how far you can scale before the return falls.
ROAS calculator: questions.
Anything else, ask us directly.
What is the ROAS formula?
ROAS (return on ad spend) is the revenue your ads generate divided by what you spent on them. 10,000 of sales from 2,500 of ads is a ROAS of 4, often written 4x, 4:1 or 400%.
What is a good ROAS?
Any ROAS above your break-even is profitable, and break-even depends on your margin: 1 divided by your profit margin. At a 50% margin you break even at 2x; at a 20% margin you need 5x. A figure that is good for one business can lose money for another.
Is ROAS the same as ROI?
No. ROAS compares revenue with ad spend only. ROI compares profit with the total investment, after product costs and other costs. A campaign can have a high ROAS and still a negative ROI if margins are thin.
Why does my ROAS in Google Ads or Meta differ from my sales?
Platforms count the conversions they can see within their attribution window, and may count a sale another channel also claims. Check that conversion tracking records real sales with their values before judging ROAS.
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