ROAS Calculator (Return on Ad Spend)
Enter ad spend, revenue, and margin to see your return on ad spend, ROI, profit, and the break-even ROAS you need before a campaign actually makes money.
Your numbers
Results update live
ROAS
4.00x
Revenue per dollar of ad spend
Break-even ROAS
1.67x
The ROAS you need just to cover cost of goods
ROI
300%
Return on the ad spend
Profit after margin
$7,000
Revenue x margin, minus spend
Our Pick
HubSpot Marketing Analytics
See ROAS by campaign and channel automatically, instead of pulling numbers into a spreadsheet every week.
How this is calculated
- ROAS = revenue from ads / ad spend.
- ROI percent = (revenue - ad spend) / ad spend x 100.
- Profit = revenue x gross margin - ad spend.
- Break-even ROAS = 1 / gross margin.
The 4:1 target you see quoted everywhere is a rough industry heuristic, not a rule. Reported ad benchmarks like the WordStream Google Ads benchmarks vary widely by industry. Your break-even ROAS, set by your own margin, is the number that tells you whether a campaign pays for itself.
Frequently asked questions
What is a good ROAS?
It depends on your margin. A common ecommerce target is 4:1, but the honest number is your break-even ROAS, which is 1 divided by your gross margin. At 50 percent margin you break even at 2:1, so anything above that makes money.
What is the difference between ROAS and ROI?
ROAS compares revenue to ad spend only. ROI accounts for what the revenue actually cost you. A 4:1 ROAS can still lose money if your margins are thin, which is why break-even ROAS matters more than a blanket target.
Should ROAS include all marketing costs?
Strict ROAS uses ad spend only. If you want a fuller picture, fold agency fees and creative costs into the spend field and treat the result as a blended number.