ROAS Calculator
Return on ad spend from the revenue a campaign brought in and what it cost, with the profit left after product costs and the break-even ROAS your margin needs.
Result…
How it's calculated
ROAS = revenue ÷ ad spend (× 100 for %) Margin before ads = (revenue − product cost) ÷ revenue Break-even ROAS = 1 ÷ margin Revenue for a target = target ROAS × ad spend
ROAS (return on ad spend) is revenue per unit of ad spend: a ROAS of 4× means every 1 spent brought back 4 in sales. It says nothing about profit on its own, because the products still have to be paid for. Break-even ROAS is 1 ÷ your margin before ads: with a 50% margin you need 2× just to cover the ads. ROI is different: it compares profit, not revenue, with what you put in. Revenue credited to ads depends on each platform's attribution window and model, so the same campaign can show different ROAS in different tools.
Your numbers, step by step
About the ROAS calculator
This ROAS calculator works out return on ad spend: the revenue a campaign brought in for each 1 spent on ads, as a multiple and as a percentage. Add the product and delivery cost of those sales and it also shows the profit left after the ads, your margin before ads and the break-even ROAS, which is 1 ÷ that margin. Enter a target ROAS to see the revenue the same spend would need to reach it, and the most you could spend on today's revenue and still hit it. It suits online sellers, marketers and agencies reviewing campaigns on search, social or shopping ads. ROAS depends on what your tracking credits to the ads, so the same campaign can show different figures in different tools; the working is shown so you can see exactly which numbers went in.
How to use it
- Enter the “Revenue from the ads” your tracking credits to the campaign.
- Enter the “Ad spend” for the same period.
- Enter the “Product and delivery cost of those sales”, or 0 if you only want ROAS.
- Enter a “Target ROAS” to see the revenue it needs and the most you can spend.
- Compare the ROAS with the break-even ROAS: below it, the ads lose money once products are paid for.
Worked example
A campaign costs 2,500 and brings in 8,000 of sales: ROAS = 8,000 ÷ 2,500 = 3.2×, or 320%. The products and delivery cost 4,800, so the margin before ads is (8,000 − 4,800) ÷ 8,000 = 40% and the break-even ROAS is 1 ÷ 0.4 = 2.5×. Profit after the ads is 8,000 − 4,800 − 2,500 = 700. A 4× target would need 10,000 of revenue, or spend of no more than 2,000 on today's sales.
Updated
Questions people ask
How do I calculate ROAS?
Divide the revenue from your ads by what you spent on them. 6,000 of sales from 1,500 of spend is a ROAS of 4×, which is also written as 400%.
What is break-even ROAS?
It is the ROAS at which ad spend uses up all of your margin, worked out as 1 ÷ your margin before ads. With a 25% margin you need a ROAS of 4× just to break even.
What is the difference between ROAS and ROI?
ROAS compares revenue with ad spend. ROI compares profit with the full amount invested, so it counts the cost of the products too. For ROI on any investment, use the ROI calculator.
What is a good ROAS?
One that is comfortably above your own break-even ROAS. A figure that works for a high-margin product can lose money on a low-margin one, so set a target from your margin, not from someone else's.
Why does my ROAS differ between ad platforms and my shop?
Each platform credits sales with its own attribution window and rules, and may count a sale another channel also claims. Use one source consistently, and remember that some credited sales may have happened without the ads. For big budget decisions, a marketing analyst or accountant can help check the figures.