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ROAS calculator

Calculate your return on ad spend and, more importantly, the break-even ROAS your margin allows. Change any number and the results update instantly.

Your ROAS

3.20

Above break-even: every ad dollar is profitable on the first order.

Break-even ROAS
1.67
Profit after ads
$9,200
Cost per acquisition
$25.00
Max CPA at break-even
$48.00

The ROAS formula

ROAS stands for return on ad spend. It measures how much revenue each dollar of advertising brings back: ROAS = revenue ÷ ad spend. A ROAS of 3 means $3 in revenue for every $1 spent.

Why break-even ROAS matters more than ROAS

Revenue is not profit. A ROAS of 2 is excellent for a product with an 80% margin and a loss for a product with a 40% margin. Your break-even ROAS is 1 ÷ gross margin. Use it as the line your campaigns have to clear, and judge every channel against it.

How to raise ROAS on cold traffic

Most brands try to fix ROAS in the ad account: new creatives, new audiences, lower bids. The bigger lever often sits after the click. When cold traffic lands on a page that explains the problem and the product before asking for the sale, conversion rate and order value go up together. That is what an advertorial does. One of our clients went from a 0.3 ROAS on product-page traffic to a stable 3.0+ this way.

ROAS FAQ

How do you calculate ROAS?

ROAS = revenue from ads ÷ ad spend. If you spend $10,000 and the ads bring in $32,000 in revenue, your ROAS is 3.2.

What is break-even ROAS?

Break-even ROAS is the ROAS at which ad spend equals the gross profit from the sale: 1 ÷ gross margin. With a 60% margin you break even at a ROAS of about 1.67. Everything above is profit on the first order.

What is a good ROAS for ecommerce?

There is no universal number. A good ROAS is one above your break-even ROAS that still lets you scale. Brands with high margins and strong repeat purchases can run at a lower first-order ROAS than brands selling one-off products.

How can I improve ROAS without cutting spend?

Raise conversion rate and order value on the landing side. Sending cold traffic to an advertorial instead of a product page often lifts both, because readers understand the product before they see the price.

Stuck below break-even?

Book a free strategy call. We'll look at your funnel and show you where an advertorial would lift ROAS.

Book a free strategy call