Finance tools
ROAS calculator — return on ad spend
Free ROAS calculator and return on ad spend calculator for Google Ads, Meta, TikTok, Amazon, and ecommerce — not return on assets (ROA) or generic ROI. Apply the ROAS formula (revenue ÷ ad spend) as a ratio and percent, plan target ROAS (tROAS) with our 2-of-3 solver, or find break-even ROAS from gross margin. Shows ACoS inverse, optional platform benchmarks, and CSV/PDF export.
What is ROAS (return on ad spend)?
ROAS (return on ad spend) measures how much revenue you earn for each dollar spent on advertising. If you spend $1,000 on ads and attribute $4,000 in revenue, your ROAS is 4× (400% in percent notation).
ROAS ≠ ROA: ROA (return on assets) is a balance-sheet profitability ratio — net income ÷ total assets. Use our ROA calculator for that metric. This page is return on ad spend only.
ROAS ≠ ROI: ROI includes all costs and capital tied to an investment. ROAS is scoped to advertising spend vs attributed revenue — a campaign-level efficiency metric, not full business profitability.
US demand is split between tool and educational intent (SISTRIX: ~50% know / ~50% do for “roas calculator”; heavy People Also Ask on SERPs). Pair this calculator with margin context — high ROAS on thin margins can still lose money after COGS and shipping.
Calculate ROAS
Revenue ÷ ad spend — hero ratio (×) and percent with ACoS.
Plan target
Enter any two of spend, revenue, or target ROAS — solve the third.
Break-even ROAS
Gross margin → minimum ROAS to cover product margin before other costs.
CSV/PDF export
Download mode-filtered inputs and results for reports or Excel.
How to calculate ROAS
Choose your mode
Calculate ROAS from spend and revenue, plan backward from a target ROAS, or find break-even ROAS from gross margin.
Enter campaign numbers
Use revenue attributed to the same campaigns and date range as your ad spend (platform reporting definitions matter).
Review ratio, ACoS, and benchmarks
Compare optional channel benchmarks; export results for stakeholders.
Worked example: $5,000 ad spend and $20,000 attributed revenue → ROAS = $20,000 ÷ $5,000 = 4× (400%). ACoS = $5,000 ÷ $20,000 = 25%.
ROAS formula (ratio and percent)
The standard ROAS formula (also written as the return on ad spend formula) is:
ROAS (ratio) = Revenue from ads ÷ Ad spend
ROAS (%) = (Revenue from ads ÷ Ad spend) × 100
Some publishers express ROAS only as a percent — e.g. $3,000 revenue on $1,000 spend = 300%. We show 3× as the primary result because Google Ads target ROAS and most media buyers speak in multiples (4:1, 4×).
In Excel or Google Sheets, if ad spend is in A2 and attributed revenue in B2:
=IF(A2>0, B2/A2, "") → ratio · =IF(A2>0, B2/A2*100, "") → percent
Inverse for Amazon-style ACoS: ACoS % = Ad spend ÷ Revenue × 100. At 25% ACoS, ROAS = 1 ÷ 0.25 = 4×.
What is a good ROAS?
There is no universal “good” ROAS — it depends on gross margin, average order value (AOV), repeat purchase rate, and channel. Ecommerce teams often cite 4× as a healthy target; industry round-ups (Triple Whale, DashThis) put the blended ecommerce average near 2× — which may not cover COGS, shipping, and returns after ad spend.
SISTRIX US volume for “what is a good roas” (~700/mo) shows this is a top PAA theme — the answer is always margin-relative, not a single benchmark number.
| Channel (indicative) | Typical ROAS range (×) | Notes |
|---|---|---|
| Google Search | 2–4× | High intent; varies by vertical CPC |
| Meta (Facebook / Instagram) | 3–5× | Prospecting often lower than retargeting |
| Google Shopping | 4–8× | Product feed quality drives spread |
| TikTok | 2–4× | Creative-dependent; newer accounts volatile |
| Brand / awareness | 1–2× | Lower direct-response expectation |
| Ecommerce blended average | ~2× | Triple Whale industry cite — not a profit target |
Always compare ROAS to break-even ROAS from your margin: at 40% gross margin, break-even is 2.5×. Anything above that leaves room for fulfillment and overhead — use Break-even mode above. Select a platform in the calculator for an indicative above/near/below chip (not a guarantee).
Break-even ROAS explained
Break-even ROAS is the minimum return on ad spend required to cover your gross margin on the sold product (before fixed overhead). Formula:
Break-even ROAS = 1 ÷ Gross margin (decimal)
| Gross margin | Break-even ROAS (×) | Equivalent ACoS |
|---|---|---|
| 50% | 2.0× | 50% |
| 40% | 2.5× | 40% |
| 33% | 3.0× | 33% |
| 25% | 4.0× | 25% |
| 20% | 5.0× | 20% |
Dropshippers and DTC brands often search break even roas calculator (~100–390 US searches/mo) as a separate query — we absorb that intent in Break-even mode so you can compare live campaign ROAS against your margin floor on one URL.
Optional: enter selling price and product cost in the advanced panel to derive margin automatically, then compare optional campaign spend and revenue to see if you are above break-even.
ROAS vs ROI vs ROA
ROAS = revenue from ads ÷ ad spend. Campaign efficiency for paid media.
ROI = (gain − cost) ÷ cost × 100, often across an entire project or business line including non-ad costs. MER (media efficiency ratio) = total revenue ÷ total marketing spend — a blended view when you run many channels.
ROA = net income ÷ total assets — a financial statement ratio. See ROA calculator.
High ROAS does not mean high profit if margins are thin — pair ROAS with profit margin and break-even analysis. For conversion-cost planning, use CPA calculator.
Target ROAS (tROAS) in Google Ads
Target ROAS (tROAS) is a Google Ads Smart Bidding strategy: you set a ROAS goal (often as a percent, e.g. 400% = 4×) and Google adjusts bids to maximize conversion value toward that target.
Before enabling tROAS, know your break-even ROAS from margin — bidding to 4× when break-even is 5× will scale unprofitable revenue. Use Plan target mode to translate a tROAS goal into required revenue or budget:
Required revenue = Ad spend × Target ROAS (ratio)
Example: $2,000 spend at 4× target → need $8,000 attributed conversion value in the bidding window. Related query target roas calculator maps to this reverse mode — not a separate product.
ROAS vs ACoS (Amazon)
ACoS (advertising cost of sales) = ad spend ÷ attributed revenue × 100. It is the inverse of ROAS expressed as a percent of revenue.
ROAS (×) = 1 ÷ ACoS (decimal). Example: 25% ACoS → ROAS = 1 ÷ 0.25 = 4×. This answers the common PAA “What ROAS is 25% ACoS?”
Amazon sellers optimize to ACoS; Google/Meta advertisers often speak in ROAS or target ROAS (tROAS). This calculator shows both ROAS and ACoS when revenue and spend are entered.
ROAS with CPA, CPM, and the paid funnel
CPM prices impressions (awareness). CPA prices conversions. ROAS prices revenue efficiency. A low CPM or CPA does not guarantee strong ROAS if order values are small or margins are thin.
Related calculators: CPA calculator, CPM calculator, churn rate calculator, and burn rate calculator.
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Frequently asked questions about this ROAS calculator
How do you calculate ROAS?
Divide revenue from ads by ad spend. Example: $20,000 revenue ÷ $5,000 spend = 4× ROAS (400%). Use Calculate ROAS mode above.
What is a good ROAS?
It depends on margin and channel. Many ecommerce teams target 4×, but break-even ROAS from gross margin is the real floor — e.g. 40% margin needs at least 2.5× before other costs.
What does 4:1 ROAS mean?
4:1 ROAS (or 4×) means you earn $4 in attributed revenue for every $1 of ad spend — equivalent to 400% in percent notation.
What ROAS is 25% ACoS?
4× ROAS. ACoS 25% means spend is 25% of revenue, so ROAS = 1 ÷ 0.25 = 4. The calculator shows ACoS automatically when you enter spend and revenue.
What is break-even ROAS?
Break-even ROAS = 1 ÷ gross margin (decimal). At 50% margin, break-even is 2×. Use Break-even mode to compute it from margin or price minus cost.
What is the difference between ROAS and ROI?
ROAS compares ad revenue to ad spend only. ROI includes broader costs and capital across a business or project. ROAS is a paid-media metric; ROI is a general investment metric.
What is the difference between ROAS and ROA?
ROAS = return on ad spend (marketing). ROA = return on assets (finance). Do not confuse the acronyms — see our ROA calculator for assets.
What is the difference between ROAS and CPA?
CPA is cost per conversion (spend ÷ conversions). ROAS is revenue per dollar of spend. If average order value is stable, improving conversion rate lowers CPA and raises ROAS together. Use our CPA calculator for conversion planning.
What is the difference between ROAS and CPM?
CPM is cost per 1,000 impressions (top of funnel). ROAS is revenue ÷ ad spend (bottom-line efficiency). Cheap reach does not guarantee strong ROAS — see CPM calculator.
What is ACoS vs ROAS?
ACoS = spend ÷ revenue (Amazon-style %). ROAS = revenue ÷ spend (ratio). They are reciprocals: ROAS = 1 ÷ ACoS (as a decimal).
Is ROAS the same as profit?
No. ROAS ignores COGS, shipping, returns, and overhead unless you add gross margin in the advanced panel for estimated net ad profit. A 5× ROAS on a 15% margin product may still lose money.
How can I improve my ROAS?
Raise conversion rate or AOV, tighten audience targeting, improve landing pages, exclude unprofitable placements, and align bidding to break-even ROAS from margin — not vanity top-of-funnel metrics alone.
What is target ROAS in Google Ads?
Target ROAS (tROAS) is a Smart Bidding strategy where Google tries to hit a ROAS goal you set (e.g. 400% = 4×). Use Plan target mode to translate a tROAS goal into required revenue or budget.
What ROAS do ecommerce brands aim for?
Many aim for 3–4× on prospecting and higher on branded search. Blended store averages near 2× are common — always benchmark against your margin-based break-even, not generic “good ROAS” lists.
What is the ROAS formula?
ROAS = Revenue from ads ÷ Ad spend (ratio). As a percent: (Revenue ÷ Spend) × 100. Example: $20,000 ÷ $5,000 = 4× or 400%. See the ROAS formula section above for Excel syntax.
Is a return on ad spend calculator the same as ROAS?
Yes. A return on ad spend calculator is another name for a ROAS calculator — both divide attributed revenue by advertising cost. This page uses ROAS as the primary label because that is what Google Ads and Meta report.