Free Online ROAS Calculator
Calculate return on ad spend, ROI, CPA, and break-even ROAS.
Enter your campaign numbers to see whether advertising is profitable after product margin.
About the ROAS Calculator
Return on ad spend, usually shortened to ROAS, answers a narrow but important question: how many dollars of revenue came back for each dollar spent on advertising. The formula is revenue divided by ad spend. A ROAS of 4.0 means four dollars of revenue per dollar spent. It is not the same as profit, because revenue still has to cover product cost, fulfillment, payment fees, and overhead. A campaign can report a healthy ROAS and still lose money if the gross margin is thin.
This calculator adds the margin context. Gross margin is the percentage of revenue left after the direct cost of the goods sold. Multiplying revenue by that percentage gives gross profit, and subtracting ad spend gives net ad profit. ROI divides net ad profit by ad spend, so it expresses profitability rather than revenue. Break-even ROAS is the minimum revenue multiple needed to cover ad spend at the current margin: a 40 percent gross margin requires a ROAS of 2.5, while a 25 percent margin requires 4.0. If actual ROAS is below break-even, the campaign is losing money on a contribution basis.
Cost per acquisition, or CPA, is ad spend divided by conversions. Average order value, or AOV, is revenue divided by conversions. Comparing CPA with AOV and with the gross profit per order shows how much room exists for acquisition costs. A conversion can mean a purchase, a lead, or a signup; the tool treats it as whatever unit your revenue figure represents, so keep the definitions consistent. For lead generation, replace AOV with the expected value of a lead.
The figures are only as good as the attribution behind them. Revenue from users who saw an ad but later bought through another channel may be counted or missed depending on the platform. Returns, discounts, and taxes can change revenue after the report is exported. Use a consistent window and compare like with like. The calculator runs locally and stores nothing.
Attribution deserves a second look. Platform-reported revenue often includes view-through or modeled conversions that another channel may also claim. A blended view divides total revenue by total ad spend and smooths those overlaps, while a channel view helps allocate budget inside the account. Compare new-customer ROAS with returning-customer ROAS; the first is usually lower and more valuable for growth. Short windows favor impulse purchases, and long windows favor considered ones, so keep the measurement period consistent across campaigns.
How to use this tool
- Enter ad spend and the revenue attributed to those ads.
- Add the number of conversions and your gross margin percentage.
- Review ROAS, ROI, CPA, AOV, net profit, and break-even ROAS.
- Copy the summary into a campaign report or budget review.
Frequently asked questions
Is a ROAS of 3 good?
It depends on margin. At a 40 percent margin, break-even ROAS is 2.5, so 3.0 is profitable. At a 20 percent margin, break-even is 5.0, and 3.0 loses money.
How is ROI different from ROAS?
ROAS compares revenue with ad spend. ROI compares net profit with ad spend after accounting for product margin, so it can be negative even when ROAS is above one.
Should I include organic revenue?
No. Use revenue attributed to the campaigns you are measuring. Mixing organic sales into the numerator inflates ROAS and misleads budget decisions.