ROAS Calculator
Enter your ad spend and revenue to instantly calculate ROAS, ROI %, break-even ROAS, and net profit. 100% free, runs in your browser — no sign-up.
Real WordStream 2026 data, independently cross-validatedProfitable — your 4.00x ROAS is above the 1.00x break-even point.
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What is ROAS?
ROAS stands for Return on Ad Spend. It tells you how much revenue you generate for every dollar spent on ads:
ROAS = Revenue ÷ Ad Spend
A ROAS of 4x means every $1 of ad spend returns $4 in revenue.
What is a good ROAS?
The often-cited benchmark is 4:1, but the honest answer is "it depends on your margin." Your break-even ROAS = 1 ÷ profit margin. At a 25% margin you break even at 4x; below that you lose money. High-margin businesses (SaaS, info products) can profit at 2–3x, while thin-margin retail may need 6x+.
| Gross profit margin | Break-even ROAS | Healthy target |
|---|---|---|
| 10% | 10x | 12.5x+ |
| 15% | 6.67x | 8.3x+ |
| 20% | 5x | 6.3x+ |
| 25% | 4x | 5.0x+ |
| 33% | 3.03x | 3.8x+ |
| 40% | 2.5x | 3.1x+ |
| 50% | 2x | 2.5x+ |
| 60% | 1.67x | 2.1x+ |
Break-even ROAS = 1 ÷ margin. "Healthy target" adds a 25% cushion above break-even — adjust for your own cost structure.
ROAS vs ROI
ROAS only compares revenue to ad spend. ROI accounts for your product/operating costs: ROI = (Profit − Spend) ÷ Spend. You can have a strong ROAS yet a negative ROI if margins are thin — which is why this ROI & ROAS calculator lets you enter a profit margin.
Go deeper: what is a good ROAS (benchmarks), ROAS vs ROI, how to improve ROAS · New to the metrics? See the ROAS, ROI & full PPC glossary.
Frequently Asked Questions
- What is ROAS?
- ROAS (Return on Ad Spend) measures how much revenue you earn for every $1 spent on advertising. Formula: ROAS = Revenue ÷ Ad Spend. A ROAS of 4x means $4 of revenue per $1 spent.
- What is a good ROAS score?
- A common rule of thumb is 4:1 (a 4x ROAS) for e-commerce, but the "good" number depends on your profit margin. With a 25% margin your break-even ROAS is 4x, so you need above 4x to profit. Low-margin businesses need a higher ROAS; high-margin businesses (like SaaS) can be profitable at 2–3x.
- What is the difference between ROAS and ROI?
- ROAS compares revenue to ad spend only (Revenue ÷ Spend), ignoring product and operating costs. ROI compares profit to spend ((Profit − Spend) ÷ Spend), so it reflects whether the campaign actually made money. You can have a high ROAS but negative ROI if margins are thin.
- How do I calculate break-even ROAS?
- Break-even ROAS = 1 ÷ gross profit margin. At a 50% margin, break-even ROAS is 2x; at a 20% margin it is 5x. Any ROAS above this point is profitable.
- How do I calculate ROAS in Google Ads?
- Google Ads shows it as "Conv. value / cost". To do it yourself: divide the conversion value (revenue attributed to ads) by the total cost for the same period. To plan a target ROAS, start from your break-even point and add the profit you want per sale.
- What is a target ROAS?
- Target ROAS is the revenue-per-dollar goal you set for a campaign or for Google's Target ROAS Smart Bidding strategy. Set it above your break-even ROAS — for example, with a 33% margin (3x break-even), a 4–5x target leaves room for profit after ad costs.