Calculate your Return on Ad Spend instantly. Find out if your campaigns are profitable and what ROAS you need to break even.
Enter your ad spend and revenue above to see your results.
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 |
Your breakeven ROAS depends on your gross profit margin. Below this number, you're losing money on every sale.
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.
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