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ROAS Calculator
ROAS = revenue ÷ ad spend
What is ROAS?
ROAS is revenue divided by ad spend. A ROAS of 4 means every $1 of ads brought back $4 of revenue.
It is the fastest health check for paid campaigns, but it is a revenue number, not a profit number — that is what break-even ROAS below is for.
Worked example
Ads cost $3,000 and drove $12,000 in revenue. 12,000 ÷ 3,000 = 4.0× ROAS (also written as 400%).
Break-even ROAS calculator
ROAS ignores your costs. Break-even ROAS is the return at which a campaign stops losing money: 100 ÷ gross margin %. At a 40% margin you need a 2.5× ROAS just to break even.
Questions
What is a good ROAS?+
Whatever clears your break-even with room to spare, and break-even depends on margin. A 3× ROAS is comfortable for a 70%-margin software product and a loss for a 20%-margin retailer. Work out break-even ROAS (100 ÷ gross margin %) first, then judge campaigns against that.
What is the difference between ROAS and ROI?+
ROAS compares revenue to ad spend only. ROI compares profit to total cost — goods, shipping, tooling, people. A campaign can have a strong ROAS and a negative ROI when margins are thin.
Should ROAS include VAT or sales tax?+
Use net revenue (without tax) — the tax was never yours. Most ads platforms report gross order values, so ROAS in the ads manager often looks better than the ROAS in your books.
The math is free. So is your first coworker.
Sokosumi's AI coworkers run the campaigns these numbers come from.
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