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ROAS Calculator

Calculate your Return on Ad Spend ratio and percentage instantly. The essential tool for ecommerce growth and campaign optimization.

Return On Ad Spend (ROAS)

4.00x
Ratio
400%
Percentage
The Formula
ROAS = Revenue ÷ Ad Spend

Advanced: Break-even ROAS

%

Example: If your product costs $50 and you sell for $100, your margin is 50%.

Break-even ROAS Needed2.00x

✓ Profitable

Maximizing Profit with ROAS

ROAS (Return on Ad Spend) is a marketing metric that measures the amount of revenue your business earns for each dollar it spends on advertising. For ecommerce brands and performance marketers, ROAS is the 'North Star' metric for judging campaign profitability.

A high ROAS indicates that your ad creative, targeting, and landing pages are working in harmony to drive sales. Conversely, a low ROAS signals that your acquisition costs might be too high for your current price points.

Ecommerce Scaling

Identify which products or collections have the highest return and allocate more budget to scale them aggressively.

Channel Comparison

Compare Google Search ROAS vs. Meta Ads ROAS to see where your next dollar is best spent for maximum growth.

Profitability Audit

Use our advanced break-even helper to ensure your 'profitable' ROAS isn't actually losing money after product costs.

Boost Your ROAS with Better Ad Creatives

High-converting ads start with perfect visuals. Use our free, browser-based image tools to prepare your assets for success:

Resize for PlatformsCompress for SpeedAdd Logos & WatermarksAll Image Tools

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Frequently Asked Questions

What is a good ROAS?▼
A 'good' ROAS depends on your profit margins. A common benchmark is 4:1 (4x ROAS), meaning for every $1 spent, you generate $4 in revenue. However, businesses with high margins might be profitable at 2x, while low-margin businesses might need 10x.
ROAS vs ROI: What is the difference?▼
ROAS only measures gross revenue compared to ad spend. ROI (Return on Investment) accounts for all costs, including cost of goods (COGS), shipping, and overhead. ROAS tells you if your ads are working; ROI tells you if your business is making money.
Why can ROAS be misleading?▼
ROAS doesn't account for product costs. You could have a high 10x ROAS on a product with a 5% margin and still lose money. Always calculate your break-even ROAS to understand your true profitability.
Does ROAS include COGS?▼
No. The standard ROAS formula is simply Revenue / Ad Spend. It does not subtract the Cost of Goods Sold (COGS). Subtracting COGS would bring you closer to calculating ROI or Marketing Contribution Margin.
What is break-even ROAS?▼
Break-even ROAS is the minimum return you need to cover both your ad spend and the cost of the products sold. It is calculated as 1 divided by your average profit margin percentage.
How to improve ROAS?▼
Improve ROAS by increasing your average order value (AOV), improving your website conversion rate (CRO), or optimizing your ad targeting to reach higher-intent users who are more likely to buy.
Is ROAS relevant for lead generation?▼
Yes, if you assign a dollar value to each lead. By calculating the average lifetime value (LTV) of a closed lead, you can estimate the 'revenue' generated by your lead-gen ads and calculate an effective ROAS.
Are my numbers stored or uploaded?▼
No. Your financial data is private. All calculations happen locally on your device. We never see or store your revenue or ad spend figures.