ROAS Calculator

ROAS = Revenue from ads ÷ Ad spend. A campaign that generates $4,000 in revenue from $1,000 in ad spend has a 4.0 ROAS (often written 4:1 or "$4 for every $1 spent").

Break-even ROAS = 1 ÷ Profit margin (as a decimal). If your profit margin is 25%, you need a 4.0 ROAS just to break even — every dollar above that ROAS is genuinely profitable ad spend, not just revenue-generating.

It depends entirely on your margins — a low-margin business might need a 5x+ ROAS just to break even, while a high-margin business (like software) could be profitable at 2x. Compare your actual ROAS to your own break-even ROAS, not to a generic industry benchmark.

No — ROAS compares revenue to ad spend only, while ROI (return on investment) typically nets out costs (including the cost of goods sold, not just ad spend) before comparing to spend. A campaign can show a strong ROAS while still being unprofitable once all costs are counted, which is exactly what break-even ROAS is meant to catch.

Profit after ad spend = (Revenue × Profit margin) − Ad spend. This turns your ROAS ratio into an actual dollar figure — a campaign can have an impressive-looking ROAS multiple and still lose money once your margin is applied, which the ratio alone doesn't show.