ROAS & Break-Even ROAS Calculator

Our free online ROAS calculator helps you compute Return on Ad Spend and find the break-even point you need to be profitable.

Inputs

%

Your margin *before* ad spend. Used to calculate Break-Even ROAS.

$
$

What is ROAS?

ROAS (Return on Ad Spend) tells you the revenue ratio for every dollar you spend on ads. It's a key metric for measuring the effectiveness of an online advertising campaign.

Formula

ROAS = Revenue ÷ Ad Spend

Example: If you spent $800 and made $2,400, your ROAS is 3.0x (300%).

Benchmarks (rough)

  • Cold traffic e‑commerce: 2x–4x typical; 5x+ is strong.
  • Subscription/Apps with strong LTV: can tolerate lower initial ROAS.
  • High‑margin products: aim higher since margins allow scaling.

FAQ

What is Break-Even ROAS?
Break-Even ROAS is the point where your ad campaign's revenue equals the ad spend plus the cost of the goods sold. Formula: 1 ÷ Profit Margin. If your margin is 40%, your break-even ROAS is 1 / 0.40 = 2.5x. Any ROAS below this means you're losing money overall.
How do I set a Target ROAS?
To set a Target ROAS for profitability, you need to know your Profit Margin and your desired Net Profit goal. For example, if your product margin is 50% and you want to make a 20% net profit after ad costs, your Target ROAS would be: 1 / (50% - 20%) = 1 / 0.30 = 3.33x. This becomes your minimum goal for campaigns.
What is a good ROAS?
A "good" ROAS is always higher than your Break-Even ROAS. While many stores aim for 3x–5x on cold traffic, the real answer depends on your specific profit margin and business goals.
Is ROAS the same as ROI?
No. ROI includes all costs and returns; ROAS only compares revenue to ad spend.
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