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ROAS Calculator

Compute return on ad spend as a ratio and a percentage. Add your profit margin to see your break-even ROAS and whether your ads are actually profitable.

Inputs

Your numbers

£
£

Used to compute your break-even ROAS. Skip if you are not sure.

Result
Your ROAS is 4.00x (400%).
Return on ad spend4.00x
As a percentage400%
Revenue£20,000
Ad spend£5,000
ROAS uses revenue, not profit. Two accounts with the same ROAS can have very different profit outcomes depending on margin, returns and lifetime value.
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FAQ

Common questions

What is a good ROAS?

It depends on your margins. A 4x ROAS is great for a low margin retailer and poor for a high margin software business. The right benchmark is your own break-even ROAS, which is set by your profit margin, not by an industry average.

What is break-even ROAS?

Break-even ROAS is the point where the gross profit from a sale equals the ad cost that produced it. If your gross margin is 25 percent, your break-even ROAS is 1 divided by 0.25, so 4x. Below that you lose money on every sale after ad cost.

ROAS vs POAS, what is the difference?

ROAS uses revenue, POAS uses profit. ROAS is easier to compute and to compare, POAS is closer to what actually matters for the business. If margins vary a lot across products, POAS is a better decision metric than ROAS.