ROAS Calculator

Revenue from ads

Ad spend

Gross margin, %

Result

ROAS5
Break-even ROAS3.333
AssessmentКампания прибыльна
Profit$30,000.00
ROMI, %50%
ROAS, %500%

Four to one can still be a loss

Return on ad spend, the minimum ROAS your margin needs to break even, and the resulting profit.

ROAS shows how much revenue each unit of ad spend returns. Five to one sounds excellent, but that is revenue, not profit: at a ten percent margin, five units of revenue leave you fifty kopecks against a rouble spent.

The only meaningful reference point is the break-even ROAS, which is one divided by margin. At a thirty percent margin it is 3.33: anything below loses money, anything above earns.

What this calculator shows

ROAS as a multiple and as a percentage
The break-even ROAS for your margin
Profit in money and ROMI, the return on the marketing investment

What to keep in mind

Margin here is gross margin: revenue less cost of goods, before rent, salaries and tax.
ROAS counts media spend only. The ROMI figure shown alongside is based on profit and reflects reality more honestly.

FAQs

How does ROAS differ from ROMI?

ROAS is revenue over spend and describes turnover per unit of advertising. ROMI is profit over spend and describes actual return. At a thirty percent margin, a ROAS of 5 equals a ROMI of 50 percent.

What ROAS is good?

The only correct answer is above your break-even. A shop on a twenty percent margin needs at least 5; a service on eighty percent needs only 1.25.

Why does ROAS fall as I scale?

Broader audiences mean colder traffic and higher bids. The normal strategy is to hold ROAS near break-even and push volume, if growth rather than margin is the goal.

Should returns be deducted?

Always. In categories like apparel a third of orders come back, and a ROAS computed on shipped revenue is overstated by exactly that third.

Worked example

An ecommerce campaign

Input: 300,000 revenue on 60,000 spend at a 30 percent margin

Output: ROAS 5, break-even 3.33 — profitable

Note: Gross profit was 90,000, advertising took 60,000, leaving 30,000. At a fifteen percent margin the break-even would be 6.67 and the same campaign would be underwater.

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ROAS Calculator

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