Free Tool

ROAS Calculator: Measure Your Return on Ad Spend

Enter your ad spend and revenue to see your ROAS instantly. Add your profit margin to reveal your break-even point and profit-based return too.

How is ROAS calculated?

ROAS is revenue divided by ad spend. If you spent $1,000 and generated $4,000 in revenue, your ROAS is 4, meaning every dollar you spent brought back four.

What do POAS and break-even ROAS tell you?

Revenue alone does not show profit. POAS multiplies revenue by your gross margin and divides by spend, so it measures what you actually earn. Break-even ROAS is 1 divided by margin: at a 25% margin it is 4, and anything below that loses money.

What is a good ROAS?

There is no single right answer; a good ROAS depends on your industry and margins. High-margin products can thrive at 3, while low-margin ecommerce may need 5 or more. What matters is staying above your own break-even point.

Frequently asked questions

What is the difference between ROAS and POAS?

ROAS is based on revenue, POAS on profit. Because POAS multiplies revenue by your gross margin before dividing by spend, it shows whether a campaign truly makes money.

How do I find my break-even ROAS?

Divide 1 by your gross profit margin. At a 40% margin your break-even ROAS is 2.5; if your actual ROAS is above that, your ads are profitable.