ROAS Calculator

Calculate return on ad spend (ROAS). Optional gross margin for profit ROAS and break-even ROAS.

Use the ROAS Calculator

Enter revenue attributed to ads and ad spend. ROAS, and optionally profit ROAS and break-even ROAS, are calculated.

Inputs

Revenue attributed to ads and ad spend. Optional gross margin % for profit ROAS and break-even ROAS.

Revenue from ads ($)

Ad spend ($)

Gross margin (%)

Results

ROAS

5.00x

ROAS = Revenue ÷ Spend (how much revenue per $1 spent). Break-even ROAS = 1 ÷ margin % — you need this many $ revenue per $ spend to break even on profit.

What this metric means

ROAS measures revenue generated per dollar of ad spend. With margin, you can see profit ROAS and the ROAS you need to break even.

How to calculate it

ROAS = Revenue ÷ Spend. Profit ROAS = (Revenue × Margin %) ÷ Spend. Break-even ROAS = 1 ÷ Margin % (so that Revenue × Margin = Spend).

How to improve the metric

Improve targeting and creative to get more revenue per click; improve conversion and AOV; or reduce spend on underperforming segments.

Common mistakes

Attributing all revenue to one channel; using revenue without margin when you care about profit; or comparing ROAS across different margin products.

How to interpret your result

Compare ROAS to break-even ROAS. Above break-even you're profitable on margin. Use profit ROAS when margins vary by product or channel.

FAQs

What is ROAS?▾

ROAS = Revenue from ads ÷ Ad spend. It's how much revenue you get per dollar spent. Often expressed as a multiple (e.g. 4x = $4 revenue per $1 spend).

What is break-even ROAS?▾

Break-even ROAS = 1 ÷ Gross margin %. At this ROAS, gross profit from the campaign equals spend. Below that you lose money on margin.

Why use profit ROAS?▾

Revenue ROAS ignores cost of goods. Profit ROAS = (Revenue × Margin %) ÷ Spend. It shows return on spend in gross profit terms.

What's a good ROAS?▾

Above break-even ROAS is minimum. Target depends on margin, payback, and growth goals. Compare to your break-even and to prior campaigns.

Related tools

Browse all calculators on NetGrow.

Use the ROAS Calculator

Enter revenue attributed to ads and ad spend. ROAS, and optionally profit ROAS and break-even ROAS, are calculated.

Inputs

Revenue attributed to ads and ad spend. Optional gross margin % for profit ROAS and break-even ROAS.

Revenue from ads ($)

Ad spend ($)

Gross margin (%)

Results

ROAS

5.00x

ROAS = Revenue ÷ Spend (how much revenue per $1 spent). Break-even ROAS = 1 ÷ margin % — you need this many $ revenue per $ spend to break even on profit.

FAQs

What is ROAS?▾

ROAS = Revenue from ads ÷ Ad spend. It's how much revenue you get per dollar spent. Often expressed as a multiple (e.g. 4x = $4 revenue per $1 spend).

What is break-even ROAS?▾

Break-even ROAS = 1 ÷ Gross margin %. At this ROAS, gross profit from the campaign equals spend. Below that you lose money on margin.

Why use profit ROAS?▾

Revenue ROAS ignores cost of goods. Profit ROAS = (Revenue × Margin %) ÷ Spend. It shows return on spend in gross profit terms.

What's a good ROAS?▾

Above break-even ROAS is minimum. Target depends on margin, payback, and growth goals. Compare to your break-even and to prior campaigns.