ROAS calculator.
Your return on ad spend, the ROAS you need to break even, and what each order can afford. Free, no login, nothing sent.
How the calculator works
ROAS (return on ad spend) is revenue divided by the ad spend that produced it:
ROAS = attributed revenue ÷ ad spend
A ROAS of 3.5× means every dollar of spend came back as $3.50 of revenue. Revenue is not profit, so the number that decides whether you can spend more is your break-even ROAS, the ROAS at which the margin on those sales exactly pays for the ads:
Break-even ROAS = 1 ÷ contribution margin
With a 35% contribution margin, break-even is 1 ÷ 0.35 = 2.86×. Below that, each order loses money before any repeat purchase. The calculator also shows contribution after ad spend (revenue × margin − spend) and the most you can pay per order (average order value × margin), which is your break-even cost per acquisition.
Two cautions. Platform-reported revenue is not the same as revenue that would not have happened anyway, so treat the ROAS you enter as an upper bound. And a single blended number hides which channel is carrying the rest; see why blended ROAS cannot tell you where to spend the next dollar.
Questions
Straight answers.
What is the ROAS formula?
ROAS equals the revenue attributed to your ads divided by the ad spend that produced it. $17,500 of revenue from $5,000 of spend is a 3.5× ROAS.
What is break-even ROAS?
Break-even ROAS is 1 divided by your contribution margin. At a 35% margin you need a 2.86× ROAS just to cover the ads on the first order.
What is a good ROAS?
Any ROAS above your break-even ROAS is profitable on the first order. A 3× ROAS is excellent at a 50% margin and loses money at a 25% margin, so the answer depends on your margin, not on an industry average.
Is ROAS the same as ROI?
No. ROAS compares revenue to ad spend only. ROI compares profit to total investment, so it subtracts product cost, fees and every other cost of the sale.
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