Free tool
ROAS calculator
Three numbers in, three answers out: your return on ad spend, the ROAS you need just to break even, and what is left after the ads are paid.
The formulas
| Result | Formula |
|---|---|
| ROAS | Revenue ÷ ad spend |
| Break-even ROAS | 1 ÷ gross margin (with margin as a fraction, so 60% gives 1.67) |
| Profit after ad spend | Revenue × gross margin − ad spend |
Why break-even matters more than ROAS
A ROAS of 3 sounds healthy. With a 25% margin it loses money, because you need a ROAS of 4 just to cover the ads. Always read ROAS next to your break-even figure.
The revenue figure matters as much. Ad platforms count conversions they saw, often with generous attribution windows, and two platforms can claim the same sale. Use revenue from your CRM. Our analytics and attribution work exists to make that number trustworthy.
Frequently asked questions
What is a good ROAS?
One above your break-even ROAS, with room for the costs the formula leaves out, such as agency fees and the time your team spends on each sale. There is no universal good number.
Should I use ROAS or ROI?
ROAS tells you how ads perform. ROI includes every cost of the campaign. Use ROAS to steer campaigns week to week and ROI to decide budgets.
Last updated · By the Napexy team
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