Patawise Tools

Ad Metrics

ROAS Calculator

Calculate your return on ad spend, then add your profit margin to see the break-even ROAS and whether the campaign actually makes money.

Runs in your browser Free, no sign-up Updated Sep 2026

Campaign numbers

$

Enter an ad spend greater than 0.

$

Sales attributed to the ads over the same period.

Enter revenue of 0 or more.

%

Gross margin on sales before ad costs: (price − cost of goods) ÷ price. Unlocks break-even ROAS and profit.

Enter a margin between 0 and 100%.

Calculated on your device. Your numbers are never sent to us.

Result

Return on ad spend (ROAS)
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Enter your ad spend and revenue to calculate ROAS.

ROAS as a percentage
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Break-even ROAS
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Break-even revenue
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Profit after ad spend
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What is ROAS?

ROAS, or return on ad spend, measures how much revenue your advertising brings in for every unit of currency you spend on it. It's the most common way to judge whether a Google Ads, Meta, TikTok or Amazon campaign is paying its way, and it's the number many ad platforms optimize toward automatically.

ROAS on its own doesn't tell you whether you made a profit. A 3× ROAS can be excellent for one business and a loss for another. That's why this calculator also works out your break-even ROAS from your profit margin.

How to calculate ROAS

ROAS = Revenue from ads ÷ Ad spend

Example: you spend $1,500 on a campaign that generates $6,300 in sales.

ROAS = $6,300 ÷ $1,500 = 4.2

The same result can be written three ways, and you'll see all of them in ad platforms and reports:

  • 4.2× or 4.2: a multiplier, as used in this calculator.
  • 4.2:1: a ratio, $4.20 back for every $1 spent.
  • 420%: a percentage, as used by Google Ads target ROAS bidding.

What is a good ROAS?

You'll often read that 4:1 is a "good" ROAS. It's a rough average, and it's misleading as a target, because the ROAS you need depends on your profit margin. A software company with 80% margins profits at a ROAS most retailers would lose money on. A reseller with 20% margins needs a much higher ROAS just to cover its costs.

The fairer question is: is my ROAS above my break-even ROAS? This table shows the minimum ROAS needed at different margins:

Profit marginBreak-even ROASTypical of
20%5.00×Electronics, resellers, marketplaces
25%4.00×Many physical products after shipping
30%3.33×General e-commerce
40%2.50×Fashion, beauty, own-brand goods
50%2.00×Premium and direct-to-consumer brands
70%1.43×Courses, services
80%1.25×Software and digital products

The "typical of" column is a rough guide. Your own margin is what counts.

Break-even ROAS explained

Break-even ROAS is the point where the profit from ad-driven sales exactly pays for the ads. Below it, every sale loses money once ad costs are included. Above it, the campaign is profitable.

Break-even ROAS = 1 ÷ Profit margin

Example: with a 30% margin, break-even ROAS = 1 ÷ 0.30 = 3.33×. Our example campaign's 4.2× ROAS is above that, so it's profitable: $6,300 × 30% = $1,890 of gross profit, minus $1,500 of ad spend, leaves $390.

For an accurate result, use your contribution margin: the share of each sale left after all variable costs, not just the product cost. Include shipping, packaging, payment processing fees, marketplace fees and the average cost of returns. Leaving these out makes your break-even ROAS look lower than it really is.

Setting a target ROAS for profit

Breaking even isn't the goal. To keep a set share of revenue as profit after ad costs, subtract that share from your margin first:

Target ROAS = 1 ÷ (Profit margin − Desired profit share)

Example: with a 40% margin and a goal of keeping 10% of revenue as profit, target ROAS = 1 ÷ (0.40 − 0.10) = 3.33×, compared with a break-even ROAS of 2.5×.

ROAS vs ROI

ROAS and ROI are often confused, but they answer different questions:

  • ROAS compares revenue with ad spend. It ignores the cost of the products you sold.
  • ROI (return on investment) compares profit with the total cost, so it shows what you actually earned.

Using the example above: ROAS is 4.2×, but the $1,500 of ad spend produced $390 of profit after product costs, an ROI on the ad spend of $390 ÷ $1,500 = 26%. Both numbers are useful. ROAS is quick to compare across campaigns, and ROI shows what reaches the bottom line.

Common ROAS mistakes

  • Mixing revenue definitions. Decide whether revenue includes sales tax or VAT, shipping charges and refunds, and use the same definition every time. Revenue excluding tax and net of refunds is the most honest choice.
  • Trusting platform ROAS blindly. Google Ads, Meta and TikTok each use their own attribution window and often count the same sale. Platform ROAS is usually higher than what your analytics or store data shows. Compare like with like.
  • Comparing different kinds of campaign. Retargeting and brand search campaigns reach people who were already likely to buy, so their ROAS is naturally high. Prospecting campaigns that find new customers will look worse on ROAS but may be what drives growth.
  • Ignoring repeat purchases. For subscriptions or products people rebuy, first-order ROAS understates the value of a new customer. Consider customer lifetime value when setting targets.
  • Judging too early. A few days of data or a handful of sales can swing ROAS wildly. Look at a full buying cycle before making big budget changes.

Frequently asked questions

What is a good ROAS for Google Ads or Facebook Ads?

There is no universal benchmark, because the right ROAS depends on your profit margin, not on the platform. Work out your break-even ROAS (1 ÷ margin) and aim comfortably above it. A 2× ROAS can be very profitable for a business with 70% margins, while a 5× ROAS barely breaks even at 20% margins.

Can ROAS be less than 1?

Yes. A ROAS below 1× means the ads brought in less revenue than they cost, so the campaign loses money even before product costs are counted. It is sometimes accepted for short periods, for example when launching a product or acquiring subscribers with high lifetime value.

How is ROAS shown in Google Ads target ROAS bidding?

Google Ads uses percentages. A target ROAS of 400% means you want $4 of conversion value for every $1 spent, the same as 4× in this calculator. To convert, multiply the multiplier by 100.

What profit margin should I enter?

Enter the percentage of each sale that is left after all variable costs of that sale: product or service cost, shipping, packaging, payment fees and an allowance for returns. Don't subtract the ad spend itself, because the calculator does that. If you only know your product markup, convert it: a 100% markup equals a 50% margin.

Should revenue include VAT or sales tax?

No. Tax collected on sales isn't yours to keep, so use revenue excluding VAT or sales tax. Make sure the ad platform's conversion values follow the same rule, or its ROAS will look better than reality.

What is the difference between ROAS and ROI?

ROAS divides revenue by ad spend. ROI divides profit by cost. A campaign can have a healthy-looking ROAS and a negative ROI if margins are thin, which is why this calculator shows your profit after ad spend alongside ROAS.

Is my campaign data stored anywhere?

No. The calculation runs entirely in your browser and your numbers are never sent to our servers. If you use the Share button, your inputs are placed in the link itself, so only people you send it to can see them.

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