Business Technology
ROAS Calculator
A ROAS calculator measures return on ad spend by dividing the revenue an ad campaign generated by what it cost. This tool also finds your break-even ROAS from your gross margin, shows profit after ad spend, and works out the revenue a target ROAS requires. A ROAS above 1 does not guarantee profit, so the margin check matters.
Reviewed October 2026
Calculator
Results
Start typing and results appear here instantly, with the formula behind each one. Or load the example.
Calculations run in your browser. Nothing you enter is sent to Stack Row.
How to Use the ROAS Calculator
Choose a tab, enter your figures, and select Calculate.
- ROAS uses revenue from ads and ad spend.
- Target Planning uses a planned budget and a target ROAS to show the revenue you need.
Add your gross margin in either tab to see break-even ROAS and profit after ad spend. Load example fills in an online store campaign.
ROAS Formulas
| Result | Formula |
|---|---|
| ROAS | Revenue ÷ ad spend |
| ROAS as a percentage | Revenue ÷ ad spend × 100 |
| Break-even ROAS | 1 ÷ gross margin |
| Profit after ad spend | Revenue × gross margin − ad spend |
| Revenue needed | Ad spend × target ROAS |
Google Ads uses the same revenue-over-spend definition in its target ROAS bidding guide. Gross margin is revenue minus the cost of goods sold, divided by revenue.
Worked Example
An online store spends $3,000 on ads and records $12,000 in revenue from them. ROAS is $12,000 ÷ $3,000 = 4, often written 4:1 or 400%.
The store's gross margin is 40%. Break-even ROAS is 1 ÷ 0.40 = 2.5, so any ROAS above 2.5:1 covers product costs and the ads themselves. Gross profit on $12,000 is $4,800, leaving $1,800 after ad spend.
Why ROAS Above 1 Can Still Lose Money
ROAS compares revenue, not profit, with ad spend. A business with a 25% margin needs a ROAS of 4:1 just to break even, because only a quarter of each sale is left to pay for the ads.
Break-even ROAS turns that into a target. Low-margin products need a high ROAS, while high-margin products such as software can profit at a lower ROAS. Recurring revenue changes the picture further, because one subscriber can pay for months, as explained in what B2B SaaS is.
ROAS Versus ROI
ROAS measures the revenue return on advertising alone. ROI compares total gain with total investment, including product, staff, and tool costs. Use ROAS to tune campaigns and the ROI calculator to judge whether a whole program pays off.
Methodology and Limitations
- Revenue is the figure your ad platform or analytics attributes to the ads. Attribution windows and models vary, so the same campaign can show different ROAS in different tools.
- Gross margin is applied as one average rate across all products sold.
- Profit after ad spend excludes overhead, fulfillment, returns, and agency fees unless you include them in your margin.
- Currency selection changes the displayed symbol only and does not convert values.
- Inputs stay in your browser. A calculation is saved locally after you select Calculate.
Frequently Asked Questions
How Do You Calculate ROAS?
Divide the revenue generated by your ads by the amount spent on those ads. $12,000 of revenue from $3,000 of spend is a ROAS of 4, or 400%.
What Is a Good ROAS?
A good ROAS is one above your break-even ROAS. Calculate break-even as 1 divided by your gross margin. With a 40% margin, anything above 2.5:1 covers product costs and ad spend.
What Is Break-Even ROAS?
Break-even ROAS is the point where gross profit from ad revenue exactly equals ad spend. It equals 1 divided by gross margin, expressed as a decimal.
Is ROAS the Same as ROI?
No. ROAS measures revenue against ad spend only. ROI measures total gain against total investment, including costs beyond advertising.
How Much Revenue Do I Need for a Target ROAS?
Multiply your ad spend by the target ROAS. To reach 5:1 on a $2,000 budget, the ads need to generate $10,000 in revenue.