ROAS Calculator
Quick answer: ROAS equals revenue divided by ad spend: a 4.0× ROAS means each $1 of ads generated $4 of revenue. Break-even ROAS equals 1 divided by your gross margin — at a 40% margin, that is 2.5×. A campaign above its break-even ROAS is profitable before overhead.
ROAS (return on ad spend) is the headline metric of paid advertising. Enter your ad spend and the revenue the ads are credited with, plus your gross margin, and this ROAS calculator returns your ROAS as a multiple and a percentage, your break-even ROAS, and a plain yes/no verdict on profitability.
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Estimate. Break-even is judged on gross profit — overhead like rent and salaries is not included.
How to use this calculator
Enter the total ad spend for the campaign and the revenue your ad platform attributes to it, then add your gross margin as a percentage. The ROAS, break-even ROAS, and verdict update instantly as you type.
Use one consistent attribution window for both inputs — comparing this month's spend against last month's revenue will skew the number.
How this is calculated
ROAS = attributed revenue ÷ ad spend. ROAS % = ROAS × 100. Break-even ROAS = 1 ÷ gross margin (as a decimal), so a 40% margin gives 1 ÷ 0.40 = 2.5×. The campaign is judged profitable when ROAS is at or above break-even.
Input definitions: ad spend is every dollar the campaign cost (media, agency, creative, landing tools); attributed revenue is what your ad platform credits to the campaign in your chosen window; gross margin is (price − cost of goods sold) ÷ price. Assumptions: this is a gross-profit break-even — overhead is excluded; attributed revenue is treated as collected cash; a 0% margin makes break-even undefined, since any ad spend loses money.
Worked example
$2,000 ad spend, $9,000 attributed revenue, 40% gross margin. ROAS = 9,000 ÷ 2,000 = 4.5× = 450%. Break-even ROAS = 1 ÷ 0.40 = 2.5×. Since 4.5× is above 2.5×, the campaign is profitable before overhead.
Reference data
| Gross margin | Break-even ROAS |
|---|---|
| 20% | 5.00× |
| 30% | 3.33× |
| 40% | 2.50× |
| 50% | 2.00× |
| 60% | 1.67× |
| 70% | 1.43× |
| 80% | 1.25× |
Source: derived from the break-even formula (1 ÷ margin) — computed illustration, not a publisher table. Thin margins demand high ROAS just to cover ad costs.
Method & sources
Method: pure arithmetic — ROAS = revenue ÷ spend, break-even ROAS = 1 ÷ gross margin — the standard definitions used by Google Ads and Meta Ads reporting. The reference table above is computed live from that formula. No external data table is consumed, so there is nothing to update or expire.
- ROAS and break-even definitions: standard ad-platform reporting conventions (Google Ads Help, Meta Ads reporting documentation).
Frequently asked questions
What is a good ROAS?
A ROAS is good when it beats your break-even: 1 divided by your gross margin. At a 40% margin, break-even is 2.5×, so 4.5× is profitable. There is no single right number — it moves with your margin and your other costs.
How is ROAS different from ROI?
ROAS equals revenue divided by ad spend. ROI equals profit divided by ad spend. ROAS ignores the cost of what you sold, so a high ROAS can still lose money if your margin is thin. Use ROAS to judge the ad channel and ROI to judge the business.
How do I calculate break-even ROAS?
Divide 1 by your gross margin as a decimal: break-even ROAS = 1 divided by margin. A 40% margin gives 1 / 0.40 = 2.5×. At that ROAS, the gross profit from the ads exactly covers the ad spend.
Should ad spend include agency fees and creative costs?
Include every dollar the campaign cost: media spend, agency fees, creative production, and landing-page tools. ROAS measured on media spend alone overstates performance.