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ROAS Calculator

Return on ad spend shows how much revenue each unit of advertising brings in. Enter your ad spend and the revenue from those ads to get ROAS and ACoS. Add your profit margin to find the ROAS at which ads break even.

ROAS calculator

Sales the ads are credited with, before costs.

%

Fill in to find your break-even ROAS and the profit after ads.

Enter your ad spend and the revenue it produced.

How to use it

  1. Enter ad spend and revenue

    Type what you spent on the ads and the revenue the ad platform credits to them over the same period.

  2. Add your margin (optional)

    Enter your profit margin before ad costs to find the break-even ROAS and the profit after ads.

  3. Read the result

    See ROAS, ACoS and, if you added a margin, whether the ads make or lose money.

Example: 500 spent, 2,000 earned

ROAS is 2,000 ÷ 500 = 4.00x and ACoS is 500 ÷ 2,000 = 25%. With a 40% margin before ads, break-even ROAS is 100 ÷ 40 = 2.50x. Profit after ads is 2,000 × 40% − 500 = 300.

ROAS and break-even at common margins

Break-even ROAS is 100 divided by your margin percentage. Below it, ads lose money after product costs.

Break-even ROAS by margin
Margin before adsBreak-even ROASBreak-even ACoS
20%5.00x20%
25%4.00x25%
40%2.50x40%
50%2.00x50%

Limits and limitations

  • ROAS ignores everything but ad spend and ad revenue. A high ROAS can still lose money if the margin is thin.
  • Revenue credited by an ad platform may include sales that would have happened anyway, or miss some ad-driven sales. This tool uses the numbers you provide.
  • The margin must be before ad costs, and should include product cost, shipping and fees.
  • The result is an estimate for planning, not accounting, tax or legal advice. Sales tax, VAT, income tax, currency conversion and returns are not included unless you enter them as a cost.

Frequently asked questions

What is ROAS?

Return on ad spend is ad revenue divided by ad spend. A ROAS of 4x means 4 earned for every 1 spent.

What is the difference between ROAS and ACoS?

ACoS is ad spend as a share of ad revenue, so it is the inverse of ROAS expressed as a percentage. A ROAS of 4x is an ACoS of 25%.

What is a good ROAS?

It depends on your margin. The break-even ROAS is 100 divided by your margin percentage, and a good ROAS is meaningfully above that.

Is my data uploaded?

No. Your numbers is worked out by JavaScript running in your browser and is not sent to a server. The page itself still loads from a web server like any website. This site can load advertising or analytics scripts, but only after you accept them in the cookie notice. They are separate from the tools, which never pass the files or text you work with to them.

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