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Free ROAS Calculator

Instantly calculate your return on ad spend, ROI, profit, and break-even. Compare your numbers against platform benchmarks — no signup required.

$
Total amount spent on ads
$
Total revenue attributed to ads
$
Product/fulfillment cost for revenue above
Used to compare against benchmarks
Your Results
Return on Ad Spend
POOR <2x
AVG 2–4x
GOOD 4–6x
EXCELLENT 6x+
ROI
Return on investment
Net Profit
Revenue − Spend − COGS
Break-even ROAS
Min ROAS to be profitable
Your ROAS vs. Industry Benchmarks
📘
Facebook / IG
2.5–3.5x avg
🔍
Google Ads
3.0–5.0x avg
🎵
TikTok Ads
2.0–3.0x avg
What if you increased ad spend?
Assuming your current ROAS holds constant — projected impact of scaling budget.
+10% +50% more spend +200%
New Spend
Projected Revenue
Projected Profit
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What is ROAS?

ROAS — Return on Ad Spend — tells you how much revenue you earned for every dollar you spent on advertising. It's the most direct way to measure ad campaign performance.

ROAS = Revenue Generated ÷ Ad Spend

For example, if you spent $500 on ads and generated $2,000 in revenue, your ROAS is 4.0x — you earned $4 for every $1 spent.

ROAS is often confused with ROI (Return on Investment). The key difference: ROAS only measures revenue vs ad spend, ignoring your cost of goods and other expenses. ROI accounts for all costs, giving you your true profit margin. Both matter — ROAS tells you if your ads are working; ROI tells you if your business is profitable.

ROI = (Revenue − Ad Spend − COGS) ÷ (Ad Spend + COGS) × 100%

How to improve your ROAS

ROAS is a function of two variables: how much you spend and how much you earn. Improving it means either earning more per dollar spent (better conversion rates, higher AOV) or spending less to acquire the same revenue (better targeting, better creatives).

01

Test creatives constantly

Ad fatigue is real. Fresh creatives targeting the same audience consistently outperform stale ones by 30–50%. Run 3–5 creative variants per ad set and kill losers weekly.

02

Tighten your audience targeting

Broad audiences waste spend on people who'll never buy. Lookalike audiences from your top customers, retargeting cart abandoners, and interest stacking all push ROAS up.

03

Optimize your landing page

A 1% improvement in landing page conversion rate can double ROAS. Test headlines, above-the-fold offers, and checkout friction — your ads bring traffic; the page makes the sale.

04

Increase average order value

Same ad spend, higher revenue. Bundle deals, upsells, and post-purchase offers all increase AOV without increasing your ad budget. Even 10% higher AOV meaningfully lifts ROAS.

05

Scale what's working — kill the rest

Underperforming campaigns drag down your blended ROAS. Aggressively cut spend on anything below break-even and reallocate to proven winners.

06

Use your break-even ROAS as a floor

Know your minimum. If break-even ROAS is 3.5x, anything below that is losing money — pause it. Don't let gut feel override the math.

Frequently Asked Questions

What is a good ROAS? +
It depends on your margins. A general benchmark: below 2x is poor, 2–4x is average, 4–6x is good, and above 6x is excellent. For ecommerce brands with 40–60% gross margins, most target 3–5x ROAS. If you have high COGS (e.g., 70%+ margins), you may need 6x+ just to be profitable. Always calculate your break-even ROAS using your actual product costs.
What is the difference between ROAS and ROI? +
ROAS measures revenue generated per dollar of ad spend — it ignores product costs. ROI factors in all costs (ad spend + COGS) and shows your true profit margin. You can have a high ROAS (e.g., 5x) and still lose money if your COGS is high. ROAS = Revenue ÷ Ad Spend. ROI = (Profit ÷ Total Investment) × 100%.
How do I calculate break-even ROAS? +
Break-even ROAS is the minimum ROAS needed to cover both your ad spend and cost of goods. Formula: Break-even ROAS = (Ad Spend + COGS) ÷ Ad Spend. Example: $500 ad spend, $1,500 COGS → break-even ROAS = ($500 + $1,500) ÷ $500 = 4.0x. Any ROAS below this means you're losing money on that campaign.
What is a good ROAS for Facebook ads? +
The industry average ROAS for Facebook and Instagram ads is around 2.5–3.5x for ecommerce brands. Most brands targeting a healthy margin aim for 3x or higher. If your ROAS is consistently below 2x on Facebook, it's a sign to test new creatives, tighten audience targeting, or audit your landing page conversion rate.
Why is my ROAS high but I'm still losing money? +
A high ROAS doesn't guarantee profit — it only measures revenue vs ad spend. If your product has high COGS, fulfillment costs, refunds, or platform fees, you may still lose money at 4x ROAS. Always calculate your break-even ROAS using your actual product costs. Use the COGS field in this calculator to see your true ROI and break-even point.