ROAS Calculator – Return on Ad Spend

Calculate your return on ad spend (ROAS) from revenue and advertising cost, estimate profit after advertising, and test how different revenue levels change your ROAS.

Written and reviewed by the CalcBundle editorial team. Transparent formulas · results are estimates, not advice.

Return on ad spend

Enter an advertising spend greater than zero.

What is a ROAS calculator?

A ROAS (return on ad spend) calculator shows how much revenue your advertising generates for every dollar spent. It is the headline metric most e-commerce and performance marketers watch — but it measures revenue, not profit, so it is only half the picture.

How is ROAS calculated?

ROAS = Revenue attributed to ads ÷ Advertising spend

A $2,000 campaign that drives $8,000 in sales has a ROAS of 4.0x, or 400%. Enter a gross margin (or product cost) and the calculator also estimates your profit after advertising.

ROAS vs ROI vs profit

ROAS compares revenue to ad spend. ROI compares profit to what you invested, so it accounts for product costs, fees and overhead. Two campaigns with an identical 4x ROAS can have very different profitability depending on margins. Always read ROAS alongside your profit margin and contribution margin.

Why a high ROAS is not always enough

Because ROAS ignores the cost of the product, a 5x ROAS on a product with a 20% margin can still be unprofitable after fees and overhead. That is why the break-even ROAS calculator is essential — it tells you the minimum ROAS you need just to cover your variable costs.

Example

Ad spend of $2,000 generating $8,000 of revenue gives a 4.0x ROAS. At a 50% gross margin that is $4,000 of gross profit, or roughly $2,000 of profit after the ad spend.

Related calculators

Find your minimum ROAS with the break-even ROAS calculator, set a profitable price with the product pricing calculator, and see full unit economics in the e-commerce profit calculator.

Frequently asked questions

What is ROAS?

ROAS (return on ad spend) is the revenue generated for every unit of currency spent on advertising. A ROAS of 4x means $4 of attributed revenue for every $1 of ad spend.

How is ROAS calculated?

ROAS = revenue attributed to ads ÷ advertising spend. For example, $8,000 revenue from $2,000 of ad spend is a 4x ROAS (or 400%).

What is a good ROAS?

There is no universal number. A profitable ROAS depends on your margins, fees and overhead. A business with thin margins needs a much higher ROAS than one with high margins. Use the break-even ROAS calculator to find your own threshold.

What is the difference between ROAS and ROI?

ROAS compares revenue to ad spend only. ROI (return on investment) compares profit to total investment, accounting for product costs, fees and overhead. ROAS can look great while ROI is negative.

Why doesn't a high ROAS always mean high profit?

ROAS ignores the cost of goods, payment and marketplace fees, shipping and fixed overhead. A high ROAS on a low-margin product can still lose money once all costs are included.

Break-Even ROAS

Find the minimum ROAS that covers your costs, from your contribution margin.

E-commerce Profit

Calculate net profit, margin, break-even price and maximum ad spend for a product.

Product Pricing

Find a profitable selling price from costs, fees, ads and target margin.

E-commerce CAC

Calculate e-commerce customer acquisition cost, CAC % of AOV and LTV:CAC.

E-commerce LTV

Estimate e-commerce customer lifetime value from AOV and repeat purchases.

Disclaimer. This calculator provides estimates for informational purposes only. Results are based on the information you enter and the assumptions used by the calculator. Actual financial, tax, business valuation, lending, marketplace or investment outcomes may differ. Consider consulting a qualified professional for decisions involving significant amounts of money. ROAS is a revenue-based advertising metric and does not by itself measure overall business profitability.