ROAS Calculator — Return on Ad Spend
Free ROAS calculator for ecommerce: current ROAS, break-even ROAS, and profit-aware targets. Free, no sign-up.
Total spent on ads this period
Revenue attributable to those ads
After product cost, before ad spend
Your desired net profit margin
📊 ROAS Analysis
Your ROAS
4.00x
✅ Profitable ROAS
Break-Even ROAS
2.86x
Target ROAS
6.67x
Net Profit
$400.00
ROI
40.0%
Revenue Needed (BE)
$2857.14
ROAS formulas (worked example)
Basic ROAS
Revenue ÷ Ad SpendExample: $4,000 ÷ $1,000 = 4x
Break-even ROAS
1 ÷ Gross MarginExample: 1 ÷ 0.35 = 2.86x
Target ROAS
1 ÷ (Margin − Profit goal)Example: 1 ÷ (0.35 − 0.20) = 6.67x
Never optimize ROAS alone. A 5x ROAS on 12% margins can still lose money after fees — confirm unit economics with a profit calculator for your country first.
Local / platform rules for ad math
Use the same currency for spend and revenue (USD, GBP, CAD, or NZD). Include refunds and partial attribution when comparing platform dashboards to Shopify revenue. iOS privacy can inflate or deflate reported ROAS — validate with blended store revenue when possible.
Benchmarks vary: Meta discovery often 2.5x–4x; Google Shopping frequently higher intent. Always anchor targets to your margin, not someone else’s screenshot.
How to use this ROAS calculator
Enter period ad spend, attributed revenue, and gross margin %. Read current ROAS vs break-even and whether the campaign is profitable. Free, no sign-up.
Frequently Asked Questions
Real questions sellers ask about this calculator and local costs.
What is ROAS and how is it calculated?+
ROAS (Return on Ad Spend) = Revenue from ads ÷ Ad spend. Spend $1,000 and generate $4,000 → 4x ROAS (400%).
What is a good ROAS for ecommerce?+
It depends on margin. Break-even ROAS = 1 ÷ gross margin. At 30% margin, break-even is ~3.33x. Many stores aim for 3x–5x on Meta; Shopping often runs higher.
What is break-even ROAS?+
The minimum ROAS that covers product/contribution costs from ad-driven sales. Above break-even you contribute to overhead and profit; below it you lose money even with “good looking” ROAS.
How is ROAS different from ROI?+
ROAS is revenue ÷ ad spend. ROI factors profit after costs. High ROAS with thin margins can still lose money — always pair ROAS with a profit margin calculator.
Why is my ROAS falling?+
Creative fatigue, higher CPMs, audience saturation, iOS attribution gaps, and seasonality. Refresh creatives, expand audiences, and re-check unit margins.
What ROAS should I target on Google Shopping?+
Optimized Shopping accounts often see 4x–8x. Start near (1 ÷ margin) × 1.5 as a planning cushion, then tighten with your data.
Can I improve ROAS without spending more?+
Yes — raise conversion rate, AOV (bundles/upsells), and creative quality. A 10% CVR lift can move ROAS as much as a budget increase.
Is this ROAS calculator free?+
Yes — free, no sign-up. Defaults ($1,000 spend / $4,000 revenue / 35% margin) show a clear worked example on load.
Related calculators
More free ecommerce profit tools on ProfitCalc.
Related guides
Deeper reading that pairs with this calculator.
Last updated:
How we calculate
ROAS = revenue ÷ ad spend. Break-even ROAS = 1 ÷ (gross margin as a decimal). Target ROAS uses your desired profit cushion: 1 ÷ (margin − target profit %). Estimated profit = revenue × margin − ad spend. Defaults pre-fill so results are never empty on first paint.