Free ROAS Calculator
ROAS = attributed revenue ÷ ad spend, so $42,000 in revenue from $10,000 in ads is a 4.2× ROAS. Enter spend, revenue and a target ROAS to see the revenue you need at that target, the most you can spend and your ACoS.
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How to use the ROAS Calculator
Enter ad spend, attributed revenue and a target ROAS. A return on ad spend calculator is a revenue-efficiency tool, so use it with margin, customer acquisition cost, returns and incrementality before scaling a campaign.
How to calculate ROAS
Take the revenue your ad platform or analytics tool attributes to a campaign, ad set or channel, and divide it by the ad spend for the same scope and dates. The calculator also shows revenue per ad dollar, which is the same number in currency form.
Target ROAS calculator
Enter the ROAS you want to hit. Revenue required at target tells you how much revenue the current spend must produce, and maximum spend at target tells you how much you can spend for the revenue you already have. Use these as guardrails when setting a tROAS bid strategy or a budget cap.
Break-even ROAS
Your target should sit above break-even ROAS, which is 1 ÷ gross margin. Work it out from price, product cost, shipping and fees with the Break-Even ROAS Calculator, then enter it here as the target.
ROAS to ACoS
Marketplace sellers often report ACoS instead of ROAS. ACoS is ad spend ÷ ad revenue × 100, the inverse of ROAS, and appears here as the advertising-to-sales ratio. A 5× ROAS equals a 20% ACoS.
Keep attribution consistent
Spend and revenue must use the same dates, channels, currency and attribution window. Mixed scopes produce a meaningless multiple.
Set targets from economics
Low-margin products need a higher break-even ROAS than high-margin products. Include fulfillment, fees and repeat-purchase assumptions.
Distinguish reported and incremental revenue
Platform attribution may claim sales that would have happened without ads. Use experiments or blended business trends where possible.
ROAS Formula
| Ad spend | Revenue | ROAS | Target revenue at 5× |
|---|---|---|---|
| $10,000 | $42,000 | 4.2× | $50,000 |
ROAS Calculator FAQs
How do you calculate ROAS?
Divide attributed revenue by advertising spend. $42,000 in revenue from $10,000 in ads is 42,000 ÷ 10,000 = 4.2×, meaning $4.20 of revenue for each advertising dollar. Multiply by 100 if you prefer to state it as a percentage (420%).
What is a good ROAS?
There is no universal number. A good ROAS is one above your break-even ROAS, which depends on gross margin, returns, fees and repeat purchases. A 3× ROAS can be profitable for a high-margin product and a loss for a low-margin one.
How do you calculate break-even ROAS?
Divide 1 by your gross margin as a decimal. At a 40% margin, break-even ROAS is 1 ÷ 0.40 = 2.5×. Below that, ads lose money on the first sale. The break-even ROAS calculator works this out from price and costs.
How do you use a target ROAS calculator?
Enter your target ROAS with current spend and revenue. The required revenue is spend × target ROAS, and the maximum spend is revenue ÷ target ROAS. Both show how far the campaign is from the target.
How do you convert ROAS to ACoS?
ACoS (advertising cost of sales) is the inverse of ROAS expressed as a percentage: ACoS = 1 ÷ ROAS × 100. A 4× ROAS equals a 25% ACoS. The calculator shows this as the advertising-to-sales ratio.
What is the difference between ROAS and ROI?
ROAS compares revenue with ad spend. ROI usually compares profit or net return with total investment, including product and operating costs, and is therefore a different measure.