Free calculator
ROAS Calculator
Enter what you spent on ads and the revenue they brought in to get your return on ad spend. Add your contribution margin to see whether the campaign covered the costs of the sales it made — ROAS on its own cannot tell you that.
How much revenue does each unit of ad spend bring in?
Excluding sales tax
Revenue left after product, fees and delivery, before ads
Nothing is saved or sent anywhere.
Result
Enter your numbers
The formula
ROAS = attributed revenue ÷ ad spendBreak-even ROAS = 1 ÷ contribution marginWorked example
You spend $1,000 and the ads bring in $3,500: ROAS is 3,500 ÷ 1,000 = 3.5x.
With a 40% contribution margin, break-even is 1 ÷ 0.40 = 2.5x. The sales left 3,500 × 0.40 = $1,400 of contribution, so after the $1,000 spend the campaign added $400 towards overhead and profit. At a 25% margin the same 3.5x would fall $125 short.
What the result means — and what it does not
- ROAS is a revenue ratio. Do not call a campaign profitable from ROAS alone.
- Attributed revenue depends on the platform’s attribution model; it may include sales you would have made anyway.
- Judge campaigns after enough data has come in; a few days can mislead.
Common questions
What is a good ROAS?
One above your break-even ROAS, which is 1 ÷ your contribution margin. With a 50% margin, 2x breaks even; with a 20% margin you need 5x. Any fixed “good ROAS” number ignores margins, which is why two businesses can read the same ROAS completely differently.
What is the difference between ROAS and ROI?
ROAS divides revenue by ad spend. ROI divides what you keep after costs by what you spent. ROAS is quick for comparing campaigns; it says nothing about profit until you bring in your margin.
Which revenue should I use?
Revenue your ad platform or analytics attributes to the campaign, excluding sales tax, for the same period as the spend. Attribution models differ, so compare campaigns measured the same way.