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ROAS Calculator
A 3× ROAS sounds great — until you remember margins. This calculator pairs your ROAS (revenue ÷ ad spend) with the break-even ROAS your gross margin implies (1 ÷ margin), then declares the verdict: profitable or not after product costs.
$
$
%
ROAS
3.50×
Break-even ROAS
1.67×
Below this you lose money after costs
Profit after margin
$1,100.00
Verdict
Profitable ✓
At 50% margin you need 2× just to break even; at 30% margin, 3.3×. Knowing your break-even line turns ROAS from a vanity number into a decision tool.
How to Use the ROAS Calculator
- 1Enter ad spend and the revenue it generated.
- 2Add your gross margin percentage.
- 3Compare ROAS against the computed break-even ROAS.
- 4Scale campaigns above the line; fix or kill those below.
Frequently Asked Questions
What is a good ROAS?
Only your margin can say: break-even ROAS = 1 ÷ gross margin. E-commerce at 50% margin needs 2×+ to profit; many aim for 4× to fund overhead and growth.
ROAS vs ROI — what's the difference?
ROAS = revenue ÷ ad spend (gross). ROI = (profit − cost) ÷ cost, after all costs. ROAS compares campaigns; ROI tells you if the business made money.
Should I include all costs in ROAS?
Classic ROAS uses ad spend only. For truth, also check the profit line this calculator shows — revenue × margin − spend — which approximates contribution after product costs.
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