ROAS and marketing ROI calculator

This free ROAS calculator turns your ad spend and funnel numbers into leads, cost per acquisition, revenue, ROAS, break-even ROAS and profit. Move the slider to see what a better conversion rate is worth.

Calculator

Your numbers Example values, replace with yours
$
$
%

Visitors who become a lead or buy

%

Use 100 for direct online sales

$
%
ROAS
6.00x
Break-even ROAS
1.67x
Profit after ad spend
$26,000
Clicks
6,667
Leads or sales
200
Cost per lead
$50.00
Customers
40
Cost per acquisition
$250.00
Revenue
$60,000
Marketing ROI
260%

At these numbers every 1 dollar of ads returns 6.00 dollars of revenue, above the 1.67 needed to break even.

Now$26,000
After$35,000
Extra profit a month+$9,000

Same budget, same traffic. Only the landing page conversion rate changes.

The formulas

ROAS formula

ROAS = revenue from ads / ad spend. If $10,000 of ads brings in $60,000 of revenue, ROAS is 6, often written 6x or 600%.

Break-even ROAS formula

Break-even ROAS = 1 / gross margin. At a 60% margin, break-even ROAS is 1 / 0.6 = 1.67. Below that, ads lose money even if revenue looks healthy.

Marketing ROI formula

Marketing ROI = (gross profit from ads minus ad spend) / ad spend. ROAS uses revenue; ROI uses profit, so ROI tells you whether the campaign actually made money.

Cost per acquisition

CPA = ad spend / customers. Compare it with the gross profit of a customer, including repeat purchases, to set the most you can afford to pay.

Target ROAS

Target ROAS is the ROAS you tell Google or Meta to bid toward. Set it above break-even, with room for the profit you need, then adjust once the campaign has enough conversion data.

ROAS and ROI FAQ

How do you calculate ROAS?

Divide revenue from ads by what you spent on those ads. 30,000 in revenue from 5,000 in ad spend is a ROAS of 6.

What is a good ROAS?

Any ROAS comfortably above your break-even ROAS. Break-even ROAS is 1 divided by your gross margin, so a 40% margin needs a ROAS of 2.5 just to break even, while an 80% margin breaks even at 1.25.

What is break-even ROAS?

The ROAS at which ad spend equals the gross profit it generates. Formula: 1 divided by gross margin as a decimal.

What is the difference between ROAS and ROI?

ROAS measures revenue per unit of ad spend. ROI measures profit after costs relative to spend. A campaign can have a high ROAS and still lose money if margins are thin, which ROI shows and ROAS does not.

How do I improve ROAS?

Raise conversion rate with better landing pages and offers, cut wasted spend on poor search terms and placements, test new creative, improve tracking so platforms optimise on real sales, and raise order value with bundles or upsells.

Does this calculator store my numbers?

No. Everything is calculated in your browser and nothing is sent anywhere.

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