Instantly measure return on ad spend for any campaign
Campaign Details
Total revenue attributed to this ad campaign
All costs for running the campaign
E.g. product cost, shipping, fulfilment. Enter 40 for 40%.
Results
ROAS Gauge
StrongBreakeven ROAS (ads + COGS)
1.67x
Industry ROAS Benchmarks
Below 1x
Losing money on ads
1x – 2x
Breaking even to slight profit
2x – 4x
Acceptable for most channels
4x – 8x
Strong — good margin for scale
8x+
Exceptional or niche channel
How ROAS is Calculated
ROAS (Return on Ad Spend) measures how much revenue you earn for every dollar spent on advertising.
Disclaimer: This calculator provides estimates for illustrative purposes only. ROAS figures depend on accurate revenue attribution, which varies by tracking methodology and platform. Consult your analytics and finance team before making advertising budget decisions.
The ROAS Calculator helps marketers and business owners measure how efficiently their advertising budget generates revenue. Enter your total revenue attributed to a campaign and your ad spend to instantly see your Return on Ad Spend (ROAS), breakeven threshold, profit margins, and ROMI. Optionally factor in cost of goods sold for a full picture of campaign profitability.
A "good" ROAS depends on your gross margin. A business with a 25% gross margin needs at least 4x ROAS just to break even on ads. Generally, 4x–8x is considered strong for most e-commerce channels, while anything below 2x is worth investigating unless you are intentionally scaling at a loss for customer acquisition.
ROAS measures revenue generated per dollar of ad spend (Revenue ÷ Ad Spend), while ROI (or ROMI) measures net profit relative to the investment. ROAS ignores your cost of goods and overheads, so a 5x ROAS could still mean a loss if your product margins are thin. This calculator lets you include COGS to show true profitability.
Breakeven ROAS is the minimum ROAS needed to cover your costs. If you only factor in ad spend, breakeven ROAS is always 1x. Once you include cost of goods (COGS), the formula becomes 1 ÷ (1 − COGS%). For example, with 50% COGS you need at least 2x ROAS to break even.
ROAS is a ratio (e.g. 4x), while ROMI expresses the same outcome as a percentage profit on the ad spend. A 4x ROAS equals a 300% ROMI — you earned back your spend plus 300% more in revenue. Both metrics are useful; ROAS is more common in ad platforms while ROMI is common in finance reporting.