ROAS Calculator
Calculate your return on ad spend and find your break-even ROAS. Enter your numbers below — results update as you type.
Your numbers
Return on Ad Spend
4.00x
ROAS measures how much revenue you earn for every dollar spent on advertising. A ROAS of 4x means every $1 in ad spend generates $4 in revenue.
FormulaROAS = Revenue from Ads / Ad Spend
How ROAS is calculated
ROAS
ROAS = Revenue from Ads / Ad SpendROAS measures how much revenue you earn for every dollar spent on advertising. A ROAS of 4x means every $1 in ad spend generates $4 in revenue.
Break-even
Break-Even ROAS = 1 / Profit MarginBreak-even ROAS tells you the minimum ROAS required to cover all variable costs. If your profit margin is 25%, your break-even ROAS is 4x — anything above that is profit.
ROAS benchmarks
| ROAS | Rating |
|---|---|
| < 1x | Losing money |
| 1x – 2x | Break-even to low margin |
| 2x – 4x | Average (ecommerce typical) |
| 4x – 8x | Good |
| 8x+ | Excellent |
Frequently asked questions
What is ROAS?
ROAS (Return on Ad Spend) measures the revenue generated for every dollar spent on advertising. It is calculated as Revenue / Ad Spend. A ROAS of 4x means you earn $4 for every $1 spent.
What is a good ROAS?
A good ROAS depends on your profit margins. For most ecommerce businesses, 4x or higher is considered good. However, businesses with high margins may be profitable at 2x, while low-margin businesses may need 8x or more.
What is break-even ROAS?
Break-even ROAS is the minimum return on ad spend needed to cover all costs without losing money. It is calculated as 1 / Profit Margin. For example, if your profit margin is 25%, your break-even ROAS is 4x.
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