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ROAS Calculator

ROAS is attributed revenue divided by ad spend. Spend 2,000,000, take 8,000,000, and that is 4× or 400%. On its own the number cannot tell you whether you made money: at a 40% gross margin, revenue has to reach spend divided by 0.4 — 2.5× — just to cover the ads. Four clears 2.5, so this campaign really is ahead.

Your numbers

ROAS

ROAS as a percentage

400%

Break-even ROAS

2.5×

Profit

1,200,000

What it means

A ROAS of 4× clears the 2.5× break-even, so the ads make money.

Formula

ROAS = Attributed revenue ÷ Ad spend, Break-even ROAS = 100 ÷ Margin

Your margin sets the break-even. At a 20% margin you need 5×; at 10%, 10×. Whether "300% ROAS" is good is unanswerable without the margin. Attribution windows matter too — the same campaign can report double the ROAS on a longer click window.

What to enter

InputDefaultAccepted range
Ad spendWhat you spent on ads in the period; production costs are usually counted apart.2,000,0000 and up
Attributed revenueRevenue attributed to those ads; change the attribution window and it moves a lot.8,000,0000 and up
Margin (%)Profit divided by the sale price. It can never exceed 100%.400 ~ 100

Step by step

FormulaROAS = Attributed revenue ÷ Ad spend, Break-even ROAS = 100 ÷ Margin
With the default numbersROAS = 8,000,000 ÷ 2,000,000, Break-even ROAS = 100 ÷ 40
AnswerROAS = 4 ×

Quick reference table

Results when only Ad spend changes and everything else stays put.

Ad spendROAS (×)ROAS as a percentage (%)Break-even ROAS (×)
1,000,00088002.5
1,500,0005.33533.32.5
2,000,00044002.5
3,000,0002.67266.72.5
4,000,00022002.5

What each result means

ResultAt default values
ROAS (×)Revenue over ad spend, as a multiple — measured on revenue, not profit.4
ROAS as a percentage (%)The same figure written as a percentage; 4× is 400%.400
Break-even ROAS (×)The ROAS at which the margin just covers the spend; at 40% margin that is 2.5×.2.5
ProfitSale price minus cost.1,200,000

Common mistakes

Your margin sets the break-even. At a 20% margin you need 5×; at 10%, 10×. Whether "300% ROAS" is good is unanswerable without the margin. Attribution windows matter too — the same campaign can report double the ROAS on a longer click window.

Glossary

Ad spend
What you spent on ads in the period; production costs are usually counted apart.
Attributed revenue
Revenue attributed to those ads; change the attribution window and it moves a lot.
Margin
Profit divided by the sale price. It can never exceed 100%.
ROAS
Revenue over ad spend, as a multiple — measured on revenue, not profit.
ROAS as a percentage
The same figure written as a percentage; 4× is 400%.
Break-even ROAS
The ROAS at which the margin just covers the spend; at 40% margin that is 2.5×.
Profit
Sale price minus cost.

Frequently asked questions

Q. How is ROAS Calculator calculated?

ROAS = Attributed revenue ÷ Ad spend, Break-even ROAS = 100 ÷ Margin — ROAS is attributed revenue divided by ad spend. Spend 2,000,000, take 8,000,000, and that is 4× or 400%. On its own the number cannot tell you whether you made money: at a 40% gross margin, revenue has to reach spend divided by 0.4 — 2.5× — just to cover the ads. Four clears 2.5, so this campaign really is ahead.

Q. Can you walk through an example?

With Ad spend 2,000,000, Attributed revenue 8,000,000, Margin 40%, the answer is ROAS 4×.

Q. What do I need to enter?

Enter Ad spend, Attributed revenue, Margin. The result recalculates as you type, and an empty box counts as zero.

Q. How much does the answer move if I change a number?

Changing only Ad spend moves the answer to Ad spend 1,000,000 → ROAS (×) 8 and Ad spend 4,000,000 → ROAS (×) 2. The table below lays out five steps.

Q. How are the numbers rounded?

Money is shown to the nearest whole unit, percentages to one decimal place and everything else to two. What you see is rounded; the calculation itself carries the unrounded value forward.

Q. Anything to watch out for?

Your margin sets the break-even. At a 20% margin you need 5×; at 10%, 10×. Whether "300% ROAS" is good is unanswerable without the margin. Attribution windows matter too — the same campaign can report double the ROAS on a longer click window.

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