ROAS calculator
Enter the revenue your ad platform attributes to a campaign and what you spent on it to get ROAS. Keep in mind that ROAS measures revenue, not profit: it ignores product cost, fees and shipping. Put simply, return on ad spend tells you how much revenue each unit of ad spend brought back.
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How to use it
- Enter the revenue attributed to your ads for the period you are measuring, as shown in the ad platform or your shop analytics.
- Enter the ad spend for the same period, in the same currency.
- Optional: enter your profit margin before ad cost to see the break-even ROAS and the estimated profit after ads.
- Read ROAS as a multiplier and as a percentage, and compare it with the break-even ROAS before you judge the campaign.
Example
Attributed revenue of 1,000 and ad spend of 200: ROAS is 1,000 ÷ 200 = 5, written 5x or 500%, and ads take 20% of revenue.
If your margin before ads is 40%, the break-even ROAS is 1 ÷ 0.40 = 2.5x and the estimated profit after ads is 1,000 × 0.40 − 200 = 200.
Limits and caveats
- ROAS is not profit. It ignores product cost, platform and payment fees, shipping, returns and tax. A campaign with a ROAS of 3x can lose money if your margin is 25%.
- The result depends on the “attributed revenue” figure you enter. Ad platforms calculate it with different attribution models and may overstate it; the tool cannot verify it.
- Break-even ROAS and estimated profit are based on the margin you enter and assume it is the same across all attributed sales.
- With an ad spend of zero, ROAS is undefined. The tool does not show it as an infinite number.
- Revenue and spend must be in the same currency and for the same period. The largest accepted amount is 1,000,000,000,000.
Questions about this tool
What is the difference between ROAS and profit or ROI?
ROAS = revenue ÷ ad spend, and no other cost is deducted. Profit and ROI are calculated after product cost, fees and shipping. That is why a campaign can have a high ROAS and still lose money.
What is break-even ROAS?
It is the lowest ROAS at which the ads do not lose money: 1 ÷ profit margin before ads. With a 40% margin you need at least 2.5x, and with a 20% margin you need 5x.
Why is the result “Undefined” when spend is zero?
Because division by zero is mathematically undefined. Revenue that arrived with no spend is not an infinite return on ads; it is unpaid sales, which ROAS does not measure.
How do I calculate ROAS?
ROAS = revenue attributed to ads ÷ ad spend. Revenue of 4,500 from a spend of 1,500 gives 4,500 ÷ 1,500 = 3, written 3x or 300%, so every 1 spent brought back 3 in revenue. Use revenue and spend for the same period and in the same currency.
What is a good ROAS?
There is no single good number for every shop: a good ROAS for you is one above the break-even ROAS set by your margin. With a 30% margin before ads, break-even is 1 ÷ 0.30 = about 3.33x, so a campaign at 4x makes money and one at 3x loses it. Enter your margin in the calculator to see the verdict straight away.