ROAS Results
Enter your revenue and ad spend, then click Calculate to see your ROAS
Understanding ROAS
What is ROAS?
Return on Ad Spend measures how much revenue you earn for every dollar spent on advertising. The formula is simple: ROAS = Revenue from Ads / Ad Spend. A 4x ROAS means you earn $4 for every $1 spent on ads. For break-even ROAS, POAS and worked examples, read our guide to calculating ROAS.
Break-even ROAS
Your target comes from your margin, not a platform average. Break-even ROAS = 1 / gross margin. At a 40% margin you break even at 2.5x; anything below that loses money on every sale the ads drive.
Common Questions
What's a good ROAS?
It depends on your profit margins. A business with 80% margins can profit at 2x ROAS, while a business with 20% margins needs 5x+ ROAS to break even. Use the break-even ROAS calculation above to find your minimum.
ROAS vs ROI, what's the difference?
ROAS measures return specific to ad spend (Revenue / Ad Spend). ROI measures overall return on total investment including all costs ((Profit - Investment) / Investment x 100). ROAS is more granular for ad campaign optimization.
How do I improve my ROAS?
Optimize targeting to reach higher-intent audiences. Improve landing page conversion rates. Increase average order value with upsells. Cut underperforming ad sets. Use retargeting to convert warm audiences at lower cost.
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