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ROAS calculator

ROAS (return on ad spend) is revenue attributed to ads divided by ad spend: $12,000 of revenue on $3,000 of spend is a 4.0× ROAS. Whether that is profitable depends on your margin — at a 40% margin you break even at 2.5×.

Revenue left after product cost, shipping, fees and returns.
ROAS
4.00×
ROAS as a percentage
400%
ACoS
25.0%
Break-even ROAS
2.50×
Profit after ad spend
$1,800

The formula

  • ROAS = attributed revenue ÷ ad spend
  • ACoS = ad spend ÷ attributed revenue
  • Break-even ROAS = 1 ÷ contribution margin
  • Profit after ads = revenue × margin − ad spend

How to use it

  1. Take ad spend and attributed revenue for the same period and the same attribution setting.
  2. Enter your contribution margin, not your gross margin, so shipping, payment fees and returns are already out.
  3. Compare ROAS with the break-even line. Above it, the ads add profit; below it, every sale they drive costs you money.

Worked example

A store spends $3,000 and the platform attributes $12,000 of revenue to it: ROAS is 4.0×, ACoS 25%. With a 40% contribution margin the break-even ROAS is 2.5×, so the campaign clears it and leaves $1,800 after ad spend.

Questions

What is the ROAS formula?

ROAS = revenue attributed to ads ÷ ad spend. $10,000 of revenue on $2,500 of spend is a 4× ROAS, also written as 400% or 4:1.

What is the difference between ROAS and ACoS?

They are inverses. ACoS = ad spend ÷ revenue, so a 4× ROAS is a 25% ACoS. Amazon reports ACoS; Google and Meta report ROAS.

What ROAS do I need to break even?

Divide 1 by your contribution margin. At a 40% margin you need 2.5×; at 25% you need 4×. The lower your margin, the higher the ROAS you need.

Why does my ROAS differ between Meta and Google?

Each platform credits itself under its own attribution window, so the same order can be counted by both. Compare platforms only under one attribution setting, and check the total against your store revenue.