Advertising
ROAS Calculator
Work out your return on ad spend from what you spent and what it earned. Add your gross margin to see whether that ROAS is actually profitable.
Adds a profit check and your break-even ROAS.
What ROAS measures
Return on ad spend (ROAS) is the revenue your advertising brings in for every unit of currency you spend on it. A ROAS of 4 means every $1 of ads produced $4 of sales. It is the quickest way to compare campaigns, channels and audiences against each other.
ROAS only looks at revenue, not profit. That is why the calculator asks for your margin: the same ROAS can be profitable for a high-margin product and loss-making for a low-margin one.
The ROAS formula
ROAS = Revenue from ads ÷ Ad spend
Usually written as a multiple (4x), a ratio (4:1) or a percentage (400%).
Example
- Ad spend
- $1,500
- Revenue from those ads
- $6,000
- ROAS = 6,000 ÷ 1,500
- 4x (400%)
- Gross profit at a 40% margin
- $2,400
- Profit after ads = 2,400 − 1,500
- $900
How to read your result
Compare your ROAS with your break-even ROAS, which is 1 divided by your gross margin. Above it, ads make money; below it, they lose money on every sale.
| Gross margin | Break-even ROAS | What it means |
|---|---|---|
| 70% | 1.43x | Software, digital products: most campaigns can be profitable |
| 50% | 2x | Many branded consumer products |
| 30% | 3.33x | Typical retail and resale |
| 20% | 5x | Thin margins: ads have to work very hard |
Not sure of your margin? Work it out with the profit margin calculator, or get your exact break-even point from your costs with the break-even ROAS calculator.
Common mistakes
Treating any ROAS above 1 as profitable
A ROAS of 1.5 means revenue is 1.5× ad spend, but if your margin is 30%, you keep only 45% of the spend back as gross profit. You are losing money.
Using the ad platform’s revenue without checking it
Platforms attribute sales with generous windows and can double-count across channels. Check against your own sales data before scaling.
Including tax and ignoring refunds
Revenue that includes sales tax or VAT, or that is later refunded, inflates ROAS. Use net revenue for decisions.
Judging a campaign on too little data
A few days or a handful of sales can swing ROAS wildly. Compare over enough orders for the number to settle.
Frequently asked questions
What is a good ROAS?
How do you calculate ROAS?
What is the difference between ROAS and ROI?
Should ROAS use revenue before or after tax and refunds?
Why is my ROAS different from the ad platform’s number?
Last reviewed 2 October 2026. This tool runs in your browser; nothing you enter is stored or sent to Boostlix.