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ROAS Calculator

ROAS calculator

ROAS (return on ad spend) is revenue ÷ ad spend — $5,000 from $1,000 spend is a ROAS of 5 (500% or 5:1). What counts as "good" is your break-even ROAS = 1 ÷ profit margin: at a 25% margin you break even at 4. Enter your numbers below for ROAS, ACOS, profit, and break-even.

ROAS %
ACOS
spend ÷ revenue
Break-even ROAS
1 ÷ margin
Gross profit after ad spend
revenue × margin − spend
Verdict

Frequently asked questions

How do you calculate ROAS?
Revenue from ads ÷ ad spend. $5,000 from $1,000 = ROAS of 5 (5:1 or 500%).
What is a good ROAS?
Depends on margin. Break-even ROAS = 1 ÷ margin. At 25% margin you break even at 4, so beat that to profit. 4:1 is a common rule of thumb.
ROAS vs ACOS?
Inverses. ROAS = revenue ÷ spend; ACOS = spend ÷ revenue. ROAS 5 = ACOS 20%.

Estimates based on your inputs, for planning only. Not financial advice.