ROAS calculator with break-even ROAS
Enter ad spend and the revenue it brought in to get your return on ad spend, then add your profit margin to see the break-even ROAS: the point below which your ads lose money.
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How to use the ROAS Calculator
- 1Enter your ad spend and the revenue from those ads.
- 2Add your profit margin as a percentage to see the break-even ROAS.
- 3Compare your ROAS with the break-even figure: above it, the ads make money.
Frequently asked questions
How is ROAS calculated?
ROAS = revenue from ads ÷ ad spend. Spending 1,000 to make 4,000 in sales is a ROAS of 4, often written 4:1 or 400%.
What is break-even ROAS?
The ROAS at which ads neither make nor lose money: 1 ÷ profit margin. With a 25% margin you need a ROAS of 4 just to cover the ad cost and the cost of the goods.
What is the difference between ROAS and ROI?
ROAS compares revenue with ad spend only. ROI compares profit with all costs, including products, staff and tools, so a campaign can have a good ROAS and still a poor ROI.
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