ROAS Calculator
Return on ad spend and the break-even ROAS your gross margin actually requires.
🔒 Runs entirely in your browser — nothing here is ever uploaded
About the ROAS Calculator
Calculates Return on Ad Spend (ROAS) — revenue generated per dollar of ad spend — and the break-even ROAS your specific gross margin requires, since ROAS alone ignores cost of goods sold and can look healthy while actually losing money.
- Enter your ad spend and the revenue generated from those ads.
- Enter your gross margin % (revenue minus cost of goods sold).
- Read your ROAS, break-even ROAS, and whether you're actually profitable after ad spend.
$5,000 ad spend generating $20,000 in revenue at a 50% gross margin: a 4x ROAS, against a break-even ROAS of 2x — $10,000 gross profit against $5,000 spend, for a $5,000 net profit after ads.
ROAS by itself doesn't account for the cost of goods sold — a 4x ROAS looks strong, but at a 20% gross margin the true break-even ROAS is 5x. 'Good' ROAS benchmarks vary enormously by industry, platform, and business model.
- • Always check ROAS against your break-even ROAS (1 ÷ gross margin), not a generic benchmark.
- • A low-margin business needs a much higher ROAS to be profitable than a high-margin one.
- • This is a simple ratio calculator — it doesn't include fixed costs, shipping, returns, or lifetime value beyond the first purchase.
- WordStream — What Is ROAS & How Do I Calculate It? — accessed 2026-08-30
Illustrative estimate only, not financial or tax advice. Verify figures with a licensed adviser or your local tax authority.