How does the roas calculator work?
Borrowed from Accounting: ROAS = revenue / ad spend
ROAS looks at revenue only, so it ignores product cost. Pair it with break-even ROAS, which uses your gross margin.
Worked example
A US store spends $3,000 on ads and earns $12,000 in attributed revenue, so ROAS = 12,000 ÷ 3,000 = 4.0.
How should I read my result?
Below break-even
The campaign loses money on each sale. Fix targeting or the offer.
Near break-even
Little profit is left after product costs. Improve conversion before scaling.
Well above break-even
Scale in steps and watch for saturation.
Embed this calculator
Questions about roas calculator
What is a good ROAS?
It depends on your margin. A store with a 40% margin breaks even at 2.5, so a ROAS of 4 is healthy.
Is ROAS the same as ROI?
No. ROI subtracts costs. ROAS only divides revenue by ad spend.
Which revenue should I use?
Use the revenue your ad platform or analytics attributes to the campaign, and use one attribution window consistently.