ROAS calculator
Calculate your return on ad spend - then add your margin to see your break-even ROAS and the real profit your ads make.
ROAS calculator
Enter revenue from ads and ad spend for ROAS. Add your gross margin to unlock break-even ROAS and true profit.
Revenue attributed to the campaign.
Total spent on the ads.
Profitability (optional)
Gross margin on the products sold. Unlocks break-even ROAS and net profit.
Revenue and ad spend are required.
Quick answer: ROAS (return on ad spend) is revenue generated by advertising divided by the amount spent on it. A ROAS of 4 means every $1 of ad spend returned $4 in revenue. Whether that's profitable depends on margin - your break-even ROAS equals 1 divided by your gross margin, so anything above that is profit.
How ROAS works
The formula is simple: ROAS = revenue from ads / ad spend. Spend $10,000 and earn $40,000 and your ROAS is 4x (or 400%). But ROAS alone doesn't tell you if you made money - it ignores the cost of the goods you sold. That's why the real question is whether your ROAS clears your break-even ROAS, which is 1 divided by your gross margin.
Break-even ROAS by gross margin
| Gross margin | Break-even ROAS | Read |
|---|---|---|
| 20% | 5.0x | Low margin needs high ROAS |
| 33% | 3.0x | Typical retail / DTC |
| 50% | 2.0x | Healthy product margin |
| 70% | 1.43x | High-margin / digital |
| 90% | 1.11x | Software / SaaS |
ROAS benchmarks by channel (rough 2026 guide)
| Channel | Typical ROAS |
|---|---|
| Branded search | 5x - 10x+ |
| Non-brand search | 2x - 5x |
| Shopping / Performance Max | 3x - 6x |
| Paid social (prospecting) | 1.5x - 3x |
| Display / YouTube | 1x - 3x (upper-funnel) |
Benchmarks vary widely by industry, offer, and attribution window. Treat them as directional and judge ROAS against your own break-even.
ROAS vs ROI vs POAS
ROAS compares revenue to ad spend only. POAS (profit on ad spend) compares gross profit to ad spend, so it already accounts for margin - a sharper efficiency signal. ROI goes further still, measuring profit against total cost including overhead. A campaign can post a flattering ROAS yet a negative ROI if margins are thin, which is why high-volume, low-margin advertisers obsess over break-even ROAS rather than the headline number.
Frequently asked questions
- What is ROAS?
- Revenue from ads divided by ad spend. A 4x ROAS means $4 of revenue per $1 spent.
- What is a good ROAS?
- It depends on margin. The common 4x rule suits ~25% margins; high-margin businesses profit at 2x or less.
- What is break-even ROAS?
- 1 / gross margin - the ROAS where ad revenue exactly covers costs. Above it is profit.
- ROAS vs ROI?
- ROAS ignores other costs; ROI measures profit against total cost. High ROAS can still mean negative ROI.
- Profitable ROAS but unprofitable business?
- ROAS ignores cost of goods and overhead. Below break-even ROAS you lose money per sale.
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