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ROAS Calculator

Return on ad spend, any direction.

ROAS is your return on ad spend: revenue divided by ad spend. Spend €1,000 and make €3,000 and your ROAS is 3x, or 300%. This calculator solves for ROAS, revenue, or ad spend from the other two, so you can check a campaign or set a target in seconds.

How ROAS is calculated

The formula, and its two rearrangements:

  • ROAS = revenue / ad spend
  • Revenue = ROAS x ad spend
  • Ad spend = revenue / ROAS

Worked examples

Revenue Ad spend ROAS
€3,000.00 €1,000.00 3.00x
€5,000.00 €2,000.00 2.50x
€12,000.00 €3,000.00 4.00x

The ROAS you need by margin

A high ROAS on a thin margin can still lose money. Your break-even ROAS is 1 divided by your gross margin, so a leaner margin demands a higher return before you turn a profit.

Gross margin Break-even ROAS
20% 5.00x
25% 4.00x
40% 2.50x
50% 2.00x
60% 1.67x

To work out the break-even ROAS and Max CPA for your own numbers, including COGS and merchant fees, use the Break-Even ROAS Calculator for the full picture.

ROAS 3.00x

Questions people ask

What is a good ROAS?

It depends on your margin. A commonly cited benchmark is 3x to 4x, but that is a rule of thumb, not a target. The real floor is your break-even ROAS, which comes from your gross margin: a 40% margin needs 2.5x just to break even, a 25% margin needs 4x. Work out your break-even ROAS first, then aim above it. The Break-Even ROAS Calculator does that math.

How do you calculate ROAS?

ROAS = revenue / ad spend. Divide the revenue a campaign generated by what you spent to generate it. Spend €1,000 and make €3,000 and your ROAS is 3x, or 300%. Rearranged: revenue = ROAS × ad spend, and ad spend = revenue / ROAS.

What is the difference between ROAS and break-even ROAS?

ROAS is what a campaign actually returned: revenue divided by spend. Break-even ROAS is the minimum ROAS you need to not lose money, set by your gross margin (break-even ROAS = 1 / gross margin). ROAS tells you how you did; break-even ROAS tells you the line you had to clear. A 3x ROAS looks fine until you learn your margin demanded 4x.