How do you calculate ROAS?

ROAS = revenue from ads ÷ ad spend. $6,000 in revenue on $2,000 of spend is a 3.0x ROAS (300%).

Any ROAS above your break-even ROAS (1 ÷ gross margin) is profitable on a first-order basis. At 60% margin, break-even is about 1.67x.

Is ROAS the same as ROI?

No. ROAS uses revenue; ROI uses profit. A 3x ROAS can still lose money if margins are thin.

Free tool · Calculators

ROAS calculator

ROAS tells you revenue per ad dollar; margin tells you whether that's profitable. Enter both and see ROAS, profit after ad spend, and the ROAS you need to break even.

Revenue from ads$Ad spend$Gross margin%

Results

ROAS: 3.00x; 300% return on ad spend
Gross profit after ad spend: $1,600
Break-even ROAS: 1.67x; 1 ÷ gross margin

How to use the roas calculator

1Enter revenue attributed to your ads and what you spent.
2Add your gross margin to see profit after ads.
3Compare your ROAS to the break-even line.

Questions

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How to use the roas calculator

Questions

01How do you calculate ROAS?

02What is a good ROAS?

03Is ROAS the same as ROI?

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