Free Paid Media Tool
Are your ads actually making money?
ROAS (return on ad spend) tells you how much revenue each advertising dollar generates. But revenue isn't profit — this calculator also shows your break-even ROAS based on your margin, so you know whether you're really ahead.
Profit margin is your gross margin on the revenue — what's left after cost of goods/delivery, before ad spend. It's what determines your break-even ROAS.
Return on ad spend
4.00x
You earn $4 in revenue per $1 spent.
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Our paid media team will audit your ad accounts and show you where the wasted spend is — free.
Quick facts
Frequently asked questions
What is a good ROAS?
It depends entirely on your profit margin. A common benchmark is 4x (400%), but the real answer is any ROAS above your break-even point, which equals 1 divided by your gross margin. At a 50% margin, break-even is 2x; at a 25% margin, you need 4x just to avoid losing money.
How do you calculate ROAS?
Divide the revenue generated by a campaign by the amount you spent on it. If you spent $5,000 and earned $20,000, your ROAS is 4x, or 400%. Enter your numbers above to see ROAS, break-even ROAS, and net profit instantly.
What's the difference between ROAS and ROI?
ROAS measures revenue per dollar of ad spend and ignores costs. ROI (return on investment) measures actual profit after all costs, including the ad spend itself. ROAS tells you if a channel is working; ROI tells you if you're making money.
Why is my ROAS high but I'm still not profitable?
Because ROAS uses revenue, not profit. If your product margins are low, a healthy-looking ROAS can still fall below your break-even point once cost of goods, shipping, and overhead are counted. Always compare ROAS to your break-even ROAS.
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