About the ROAS Calculator
This ROAS calculator measures return on ad spend: how many dollars of revenue a campaign produced for every dollar you paid the ad platform. Enter the revenue attributed to your ads and what those ads cost, and you get ROAS as a multiple (5x) and a percentage (500%), plus the advertising cost of sale (ACoS) that Amazon sellers use.
Revenue alone does not tell you whether a campaign made money, so the calculator also asks for your gross margin. It turns attributed revenue into gross profit, subtracts ad spend to show the real profit left after advertising, and compares your ROAS to the break-even ROAS for that margin. That makes it useful for media buyers, e-commerce owners and agencies reviewing Google Ads, Meta, TikTok or Amazon campaigns.
Use the revenue figure reported by your ad platform or analytics tool for the same date range as the spend. Attribution windows differ between platforms, so compare campaigns using the same source.
With the default inputs, the roas is 5 x. Change any value above to recalculate instantly.
How to use the roas calculator
- 1Enter the revenue your ad platform or analytics attributes to the campaign.
- 2Enter the ad spend for the same date range.
- 3Add your gross margin after product cost, shipping and payment fees.
- 4Read ROAS and compare it with the break-even ROAS shown below it.
- 5Use profit after ad spend and ad ROI to decide whether to scale or cut the campaign.
Formula and method
ROAS is attributed revenue divided by ad spend. A ROAS of 4 (or 400%) means each dollar of advertising produced four dollars of sales. ACoS is the inverse expressed as a percentage, so 4x ROAS equals 25% ACoS.
Because ROAS ignores product costs, the calculator multiplies revenue by your gross margin to get gross profit, then subtracts ad spend to show profit after advertising. Break-even ROAS is 1 ÷ margin: with a 40% margin you need 2.5x just to cover product costs and ads. Ad ROI is profit after ads divided by ad spend.
- Revenue
- Sales attributed to the ads in the period
- Ad spend
- Total paid to the ad platform for the same period
- Gross margin
- (Revenue − product, shipping and fee costs) ÷ revenue
Worked examples
$25,000 revenue from $5,000 spend at a 40% margin
$25,000 ÷ $5,000 gives a ROAS of 5x, or an ACoS of 20%. A 40% margin turns the revenue into $10,000 of gross profit, leaving $5,000 after the ad bill — a 100% return on the ad money. Break-even for this margin is 2.5x.
Meta campaign that looks good but loses money
A 3x ROAS sounds healthy, but at a 30% margin the $12,000 of sales only produces $3,600 of gross profit. After $4,000 of ad spend the campaign is $400 in the red; it needs about 3.33x ROAS to break even.
Amazon PPC with a 60% margin
$8,000 of ad sales on $2,000 spend is 4x ROAS or 25% ACoS. With a 60% margin the sales produce $4,800 of gross profit, so $2,800 remains after ads — a 140% return on ad spend dollars.
Frequently asked questions
What is a good ROAS?+
There is no universal number: a good ROAS is one above your break-even ROAS, which is 1 ÷ gross margin. A store with 50% margins breaks even at 2x, while a 25% margin business needs 4x. Aim for a target above break-even that leaves the profit margin you want after ad costs.
What is the difference between ROAS and ROI?+
ROAS compares revenue to ad spend and ignores product costs. ROI compares profit to the money invested. A campaign can have a 3x ROAS and still a negative ROI if margins are thin, which is why this calculator shows both.
How do I convert ROAS to ACoS?+
ACoS is 1 ÷ ROAS expressed as a percentage. A ROAS of 4x equals an ACoS of 25%, and a ROAS of 2x equals an ACoS of 50%. Lower ACoS and higher ROAS mean more efficient ads.
Should ROAS use revenue or profit?+
Standard ROAS uses revenue, which is what ad platforms report. To judge profitability you then compare it with break-even ROAS or look at profit after ad spend. Some teams track "POAS" (profit on ad spend) instead.
Why does my ROAS differ between Google Ads, Meta and Google Analytics?+
Each platform uses its own attribution model and conversion window, so the same sale can be credited to different channels or counted more than once. Compare ROAS within one source and date range to avoid mixing models.