ROAS Calculator
Calculate your Return on Ad Spend and see if your campaigns are profitable!
Not sure what ROAS means? Check the FAQ below
Required Metrics
Optional Metrics
For deeper analysisPerformance Metrics
ROAS Analysis
Return on Ad Spend
4.00x
For every $1 spent, you get $4.00 back
Profit Analysis
How We Calculate Your ROAS
Here's how we calculate your Return on Ad Spend:
Revenue
Total revenue generated from your ad campaigns
Ad Spend
Total amount spent on advertising
ROAS
Your Return on Ad Spend
Profitable!
Tips & Insights
- 🚀 Excellent ROAS! Your campaigns are highly profitable. This is a great opportunity to scale aggressively.
Frequently Asked Questions
What is ROAS?
ROAS (Return on Ad Spend) measures the revenue generated for every dollar spent on advertising. It's calculated by dividing revenue from ads by ad spend. For example: spend $1,000 on ads, generate $4,000 in revenue = 4x ROAS. Learn more in our ROAS glossary.
What's a good ROAS?
A "good" ROAS depends on your profit margins, but generally: Below 1x means you're losing money. 2-4x is healthy for most businesses. Above 4x is excellent. However, you need to compare ROAS to your break-even point - if you have 25% margins, you need at least 4x ROAS to break even (not just 1x).
What's the difference between ROAS and ROI?
ROAS measures revenue return (4x ROAS = $4 revenue per $1 spent), while ROI measures profit return (300% ROI = $3 profit per $1 spent). ROAS is higher than ROI because it includes costs. Both are important - ROAS shows campaign performance, ROI shows actual profitability.
What is break-even ROAS?
Break-even ROAS is the minimum ROAS needed to cover your product costs and not lose money. It's calculated as: 1 ÷ Profit Margin. So if your profit margin is 30%, your break-even ROAS is 3.33x (1 ÷ 0.30). Anything above this means you're profitable.
How do I improve my ROAS?
There are two main ways: 1) Increase Revenue by improving conversion rate, increasing prices, or adding upsells. 2) Decrease Ad Spend by optimizing targeting, improving ad creative, or focusing on high-performing campaigns. Also check our Ads Profit Calculator to optimize your overall strategy.
Why is my ROAS good but I'm not profitable?
This happens when your ROAS is above 1x but below your break-even ROAS. For example, if you have 20% profit margins, you need 5x ROAS to break even. A 3x ROAS means you're generating revenue but not enough to cover costs. Always compare your ROAS to your break-even point, not just 1x.
When should I scale my ad campaigns?
Scale when your ROAS is above your break-even point and staying consistent. Start with 20-30% budget increases and monitor performance. If ROAS drops significantly, you may have saturated your audience. Use our LTV Calculator to understand your maximum acquisition cost before scaling.