Advertising
ROAS Calculator
Work out return on ad spend from your ad cost and attributed revenue, and check it against the break-even ROAS your margin allows.
ROAS is revenue, not profit: a campaign can return four dollars per ad dollar and still lose money once product costs are paid. That is why this page also shows break-even ROAS — the multiple your margin requires — so you can judge a campaign against your own numbers instead of a generic 'good ROAS' claim.
Formula
ROAS = revenue attributed to ads ÷ ad spend. Break-even ROAS = 1 ÷ gross margin (as a decimal). At a 40% margin, break-even ROAS is 1 ÷ 0.40 = 2.50x: below that, ad-driven sales lose money after product costs.
How it works
Enter what the ads cost and the revenue attributed to them over the same period, then enter your gross margin on those sales — the share of revenue left after product and delivery costs, before ad spend. The calculator shows the ROAS multiple, the percentage of spend returned as revenue, and the break-even multiple your margin sets. Compare the two multiples, not the ROAS alone.
Worked example
$2,000 of attributed revenue on $500 of ad spend gives a ROAS of $2,000 ÷ $500 = 4.00x, which is 400% of spend returned as revenue. At a 40% gross margin, break-even ROAS is 1 ÷ 0.40 = 2.50x, so 4.00x sits above break-even and the campaign covers its cost after product costs.
FAQs
Is ROAS the same as profit?
No. ROAS compares revenue with ad spend only. A campaign can have strong ROAS and still lose money after product, fulfillment and returns costs, which is why break-even ROAS matters.
What is break-even ROAS?
The ROAS multiple at which ad-driven sales exactly cover product costs: 1 divided by your gross margin. At 40% margin it is 2.50x; at 25% margin it is 4.00x, so thinner margins need higher ROAS.
What is a good ROAS?
It depends on your margin. A 3.00x ROAS is profitable at a 40% margin (break-even 2.50x) but unprofitable at a 20% margin (break-even 5.00x). Judge it against your own break-even, not a universal target.
How should I measure attributed revenue?
Use the platform's attributed figure for the same period as the spend, then sanity-check it against real orders, because attribution is never exact and can overstate what the ads caused.
Does this calculator include fees and shipping?
Only through your gross margin figure. Enter a margin that already reflects product, fees and delivery costs on those sales, so the break-even comparison is honest.
Stand: October 2026. Pure arithmetic — no platform rate is used; enter your own figures.
Disclaimer: Results are estimates and general information only, not tax or financial advice. Fees change, so check the platform's current fee schedule before you price an item.
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