Free Calculator

ROAS Calculator

Calculate your Return on Ad Spend instantly. Find out if your campaigns are profitable and what ROAS you need to break even.

Your Numbers

$
Total amount spent on ads this period
$
Total revenue attributed to those ads
%
Used to calculate breakeven ROAS and actual profit

Enter your ad spend and revenue above to see your results.

Your ROAS
For every $1 spent
in revenue returned
Ad Spend
Revenue
Gross Profit
Net Ad Profit
Breakeven ROAS
at your margin
Revenue per $1

What Is a Good ROAS?

ROAS benchmarks vary significantly by industry, profit margin, and business model. A ROAS that's profitable for a high-margin SaaS company may lose money for a retailer with 20% margins. Always evaluate ROAS against your specific gross margin — not just an industry average.

ROAS Assessment What It Means
Below 2.0 Losing Money Almost certainly unprofitable unless margins are extremely high (>80%)
2.0 – 3.9 Marginal May be profitable depending on your margin; worth analyzing further
4.0 – 7.9 Good Healthy return for most businesses; scaling is typically justified
8.0+ Excellent Strong performance; focus on scaling volume while maintaining efficiency

ROAS Formula

ROAS = Revenue ÷ Ad Spend

Example: $10,000 revenue ÷ $2,000 ad spend = 5.0 ROAS

Breakeven ROAS Formula

Your breakeven ROAS depends on your gross profit margin. Below this number, you're losing money on every sale.

Breakeven ROAS = 1 ÷ Gross Profit Margin

Example: 1 ÷ 0.40 (40% margin) = 2.5 ROAS needed to break even

ROAS vs. ROI: What's the Difference?

ROAS measures revenue generated per dollar of ad spend — it's a revenue metric. ROI measures profit generated per dollar of total investment — it's a profitability metric. A campaign can have a strong ROAS but a negative ROI if your cost of goods, fulfillment, or other expenses are high. Use ROAS to evaluate campaign performance; use ROI to evaluate business profitability.

Not hitting your ROAS targets?

White Heaven Co builds and manages ad campaigns for coastal businesses — with real reporting, real optimization, and real accountability to your numbers.

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