There is no universal "good" number — it depends entirely on your margins. A 4x ROAS is comfortably profitable for a business with a 50% gross margin and a loss for one with a 20% margin. The useful comparison is your own break-even ROAS (1 ÷ gross margin): anything above it makes money on a gross-margin basis, anything below it loses money, regardless of how the ratio compares to anyone else.

How is ROAS calculated?

ROAS = revenue from ads ÷ ad spend. If you spend $1,000 on ads and they produce $4,000 in revenue, your ROAS is 4x (or 400%). Use the same time period and attribution window for both numbers.

What is the difference between ROAS and ROI?

ROAS compares revenue to ad spend and ignores every other cost. ROI compares profit to total investment — it subtracts cost of goods, shipping, fees, and overheads. A campaign can have a high ROAS and a negative ROI if margins are thin. That is why this calculator asks for your gross margin: it bridges the two by showing profit on ad spend.

What is break-even ROAS?

Break-even ROAS is the minimum ROAS at which your ads stop losing money on a gross-margin basis: 1 ÷ gross margin. At a 40% margin, break-even is 2.5x — every dollar of ad spend needs $2.50 of revenue just to cover the spend. At a 25% margin it rises to 4x.

Does the calculator store my data?

No. The calculator runs entirely in your browser. Inputs sync to the URL so you can share a result, but they are never sent to a ROAS Shield server.

ROAS Calculator

Free ROAS calculator: enter ad spend and revenue to get your return on ad spend, break-even ROAS from your margin, and profit on ad spend. No signup.

How ROAS works

Return on ad spend (ROAS) is the simplest health check for paid advertising: how much revenue did each dollar of ad spend produce? The formula is revenue from ads ÷ ad spend. Spend $1,000, generate $4,000 in attributed revenue, and your ROAS is 4x — or 400% when expressed as a percentage. Both notations describe the same thing; ad platforms usually report the ratio, finance teams often prefer the percentage. For a fuller definition, see the ROAS glossary entry.

A worked hypothetical: suppose a store spends $2,500 on Meta ads in a month and Ads Manager attributes $8,750 of revenue to those campaigns. ROAS is $8,750 ÷ $2,500 = 3.5x. On its own, that ratio says nothing about profit — it compares revenue, not margin, to spend. Whether 3.5x is a win depends entirely on what it costs the store to deliver that revenue.

Break-even ROAS: the number that actually matters

Break-even ROAS converts your gross margin into the minimum ROAS your ads must hit before they stop losing money: break-even ROAS = 1 ÷ gross margin. Continuing the hypothetical, if the store keeps 40 cents of every revenue dollar after cost of goods (a 40% gross margin), its break-even ROAS is 1 ÷ 0.40 = 2.5x. At 3.5x actual ROAS, the ads clear break-even: profit on ad spend is $8,750 × 0.40 − $2,500 = $1,000. Squeeze the margin to 25% and break-even jumps to 4x — the identical 3.5x campaign now loses $312.50. This is why "what is a good ROAS" has no universal answer: the same ratio can be profitable or unprofitable depending on margin. Compare your ROAS to your own break-even, not to anyone else's account.

The ROAS drag hiding in your ad comments

One input to ROAS that rarely gets audited is what happens under the ad itself. The comment section of a paid ad is part of the ad: buyers ask "how much is shipping?" or "is this legit?" and, when nobody answers, some of them simply don't buy — revenue your spend already paid to attract. Meanwhile scam links and complaint pile-ons sit next to your creative and erode trust in it. Neither shows up as a line item in Ads Manager; both show up as a weaker numerator in the ROAS formula. If you run Meta ads at any volume, it's worth estimating that effect with the ad comment revenue leak calculator and reading how to protect ROAS from ad comment spam. Moderating and replying won't change your margin — but it protects the revenue side of a ratio you're already paying for.

A note on scope: this calculator reports ROAS on a gross-margin basis. It doesn't account for platform fees, shipping, creative production, agency retainers, or customer lifetime value — a campaign slightly below break-even ROAS can still be rational if repeat purchases follow, and one slightly above it can be marginal once overheads land. Treat break-even ROAS as the floor for a single-purchase view, then layer your own economics on top.

Frequently asked questions

What is a good ROAS?: There is no universal "good" number — it depends entirely on your margins. A 4x ROAS is comfortably profitable for a business with a 50% gross margin and a loss for one with a 20% margin. The useful comparison is your own break-even ROAS (1 ÷ gross margin): anything above it makes money on a gross-margin basis, anything below it loses money, regardless of how the ratio compares to anyone else.
How is ROAS calculated?: ROAS = revenue from ads ÷ ad spend. If you spend $1,000 on ads and they produce $4,000 in revenue, your ROAS is 4x (or 400%). Use the same time period and attribution window for both numbers.
What is the difference between ROAS and ROI?: ROAS compares revenue to ad spend and ignores every other cost. ROI compares profit to total investment — it subtracts cost of goods, shipping, fees, and overheads. A campaign can have a high ROAS and a negative ROI if margins are thin. That is why this calculator asks for your gross margin: it bridges the two by showing profit on ad spend.
What is break-even ROAS?: Break-even ROAS is the minimum ROAS at which your ads stop losing money on a gross-margin basis: 1 ÷ gross margin. At a 40% margin, break-even is 2.5x — every dollar of ad spend needs $2.50 of revenue just to cover the spend. At a 25% margin it rises to 4x.
Does the calculator store my data?: No. The calculator runs entirely in your browser. Inputs sync to the URL so you can share a result, but they are never sent to a ROAS Shield server.