ROAS Calculator
Calculate your Return on Ad Spend with break-even analysis. Includes COGS for true profitability measurement. Perfect for e-commerce and digital marketing teams.
📊Campaign Data
💡 ROAS Benchmarks
- • E-commerce: 4:1 is considered good
- • Brand awareness: 2:1 may be acceptable
- • High-margin products: 3:1 can be profitable
ROAS Results
Net ROAS
2.20:1
Break-even
1.82:1
Profit Analysis
Understanding ROAS
ROAS (Return on Ad Spend) is one of the most important metrics for measuring advertising effectiveness. It tells you how much revenue you generate for every dollar spent on advertising.
ROAS Formula
ROAS = Revenue from Ads ÷ Ad Spend
Net ROAS = (Revenue - COGS - Shipping) ÷ Ad Spend
Break-even ROAS = 1 ÷ Profit Margin
Why Net ROAS Matters
Basic ROAS only looks at revenue, but Net ROAS accounts for your actual costs (COGS, shipping, fulfillment). This gives you a clearer picture of true profitability.
Frequently Asked Questions
What is ROAS?
ROAS (Return on Ad Spend) is a marketing metric that measures the revenue generated for every dollar spent on advertising. A ROAS of 4:1 means you earn $4 for every $1 spent on ads.
What is a good ROAS?
A good ROAS varies by industry, but generally 4:1 (400%) is considered strong. E-commerce typically aims for 3:1 to 5:1. However, your target ROAS should account for profit margins and business costs.
How do I calculate break-even ROAS?
Break-even ROAS = 1 / Profit Margin. For example, if your profit margin is 25%, your break-even ROAS is 1/0.25 = 4:1. This means you need to earn $4 for every $1 in ad spend to break even.
What's the difference between ROAS and ROI?
ROAS measures revenue per ad dollar spent, while ROI (Return on Investment) measures profit after all costs. ROAS = Revenue/Ad Spend. ROI = (Profit - Cost)/Cost × 100%.