ROAS Calculator
Calculate Return on Ad Spend (ROAS) and distinguish it from ROI to evaluate advertising campaign profitability.
Results
What is it?
ROAS (Return on Ad Spend) measures how many dollars of revenue you generate for every dollar spent on advertising. A ROAS of 5x means you earn $5 for every $1 spent. ROI (Return on Investment) is different — it accounts for profit, not just revenue. ROAS ignores your COGS and operating costs; ROI does not.
How to use
1. Enter the total revenue directly attributable to your ad campaign. 2. Enter your total ad spend for that campaign. The calculator shows ROAS (in multiples), ROI percentage, and gross profit.
Example scenario
You spend $2,000 on Facebook ads and generate $10,000 in sales. ROAS = 5x ($10,000 / $2,000). Gross profit from ads = $8,000. ROI = 400%. However, if your product costs $6,000 to produce, your true profit is only $2,000, and the net ROI is 0% — meaning you just broke even.
Pro tip
Your break-even ROAS = 1 / gross margin. At 40% gross margin, you need ROAS > 2.5x just to break even. Target ROAS by channel: Google Shopping 4–6x, Facebook 2–4x, branded search 8–15x. Always set target ROAS above break-even ROAS by at least 20% to account for overhead and ensure profitability.