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
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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