SellerCalcs

ROAS Calculator

Revenue per ad dollar, the ACoS it implies, and whether the campaign actually made money.

Quick answer: ROAS = revenue ÷ ad spend. Spending $1,200 to generate $4,800 is a 4× ROAS (25% ACoS). Whether that is good depends on margin: at a 35% gross margin your break-even ROAS is 2.86×, so 4× leaves $480 of profit.

Campaign inputs

%

Revenue minus product cost, shipping and fees, as a share of revenue.

$
$
$
ROAS
ACoS
25%
Ad spend ÷ revenue
Gross profit
$1,680.00
Profit after ads
$480.00
Profitable: 4× ROAS is above your 2.86× break-even. Break-even ROAS at this margin is 2.86× (ACoS ceiling 35%).

Break-even ROAS = 100 ÷ gross margin %. With a 35% margin you need 2.86× just to cover ad spend — before any overhead.

Core facts
PriceFree, no sign-up
InputAd spend, revenue, gross margin (before ads)
OutputROAS, ACoS, gross profit, profit after ads, verdict vs break-even
RunsEntirely in your browser

What is ROAS Calculator?

ROAS (return on ad spend) measures how much revenue each advertising dollar produced: revenue divided by ad spend. It is the fastest read on a campaign, but on its own it says nothing about profit, because revenue is not margin. A 4× ROAS on a product with a 60% gross margin is excellent; the same 4× on a 15% margin product loses money. This calculator therefore reports ROAS, ACoS (the same ratio expressed as a percentage of revenue from the advertiser's side) and, crucially, the gross margin and profit left after ads, with a verdict against your break-even ROAS.

Common Uses for ROAS Calculator

  • Check yesterday's campaign before increasing the budget
  • Set a target ROAS that reflects your actual product margin
  • Compare ROAS across products, channels or creative sets
  • Explain to a client why a 3× ROAS is running at a loss
  • Decide when to pause a scaling test

Break-even ROAS = 100 ÷ gross margin %

A 25% margin needs 4× ROAS to break even, 35% needs 2.86×, 50% needs 2×, 60% needs 1.67×. Below that line every extra order increases your loss, which is why fast growth at a 1.5× ROAS is a way to run out of cash faster, not a growth strategy.

Profit after ads, not profit on paper

Gross profit = revenue × margin. Profit after ads = gross profit − ad spend. On $4,800 revenue at 35% margin you start with $1,680 of gross profit and hand $1,200 to the ad platform, keeping $480 — a 10% net margin on revenue and a 40% return on ad spend. That is the number to compare with your overhead.

Watch ACoS drift when you scale

Reach-driven expansion usually pushes ACoS up as you leave the highest-intent audiences. Re-run this calculator at your projected spend and revenue before each budget increase, and stop where profit after ads stops growing.

Frequently Asked Questions

What is a good ROAS?
It depends entirely on margin. At 60% margin anything above 1.67× is profitable; at 20% margin you need 5× just to break even. Judge ROAS only against your own break-even figure, never against an industry benchmark.
What is the difference between ROAS and ACoS?
They are reciprocal views of the same ratio. ROAS is revenue ÷ spend, ACoS is spend ÷ revenue as a percentage. A 4× ROAS equals a 25% ACoS. Amazon sellers tend to use ACoS, other platforms tend to use ROAS.
Does ROAS include organic sales?
Only if the platform attributes them. Blended ROAS (total revenue ÷ total ad spend) includes organic revenue and is useful for business-level decisions; platform-reported ROAS counts attributed conversions only and is better for campaign optimisation.
Should I use revenue or profit in the ROAS formula?
Revenue is the standard and keeps you comparable with platform dashboards. Then subtract ad spend from gross profit to see what you actually earned — the calculator does that so you never scale a campaign on revenue alone.
How do new-customer ROAS targets differ?
Acquisition campaigns often run at a lower ROAS target because the first order is an investment and repeat purchases carry the profit. Track contribution over 60–90 days, not the first order, when you set those targets.

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