ROAS Calculator: Free Return on Ad Spend Tool

Plug in your ad spend and revenue below for your ROAS. Use Profit-Aware mode to compare it with your cost-based break-even point and contribution after advertising.

How to use this ROAS calculator

1. Enter the revenue attributed to the advertising you are evaluating.
2. Enter the matching media spend, using the same currency and reporting scope.
3. Choose Profit-Aware and enter your pre-ad contribution margin.
4. Optionally enter extra period costs that are not already included in the other inputs.
5. Review the ratio, break-even threshold, and contribution dollars together.

Changing the currency changes the display symbol. It does not convert exchange rates. Do not combine amounts in different currencies.

What does 4× ROAS mean?

ROAS is revenue divided by ad spend. $4,000 of revenue divided by $1,000 of advertising is 4×, 4:1, or 400%. It is not 400% profit.

Check the conversion value your platform uses. Estimated lead values, fixed event values, revenue, and profit values are different inputs. Revenue-based ROAS only makes sense when the value really represents revenue on a consistent basis.

Why can 4× ROAS still lose money?

At $4,000 revenue and $1,000 ad spend, a 20% pre-ad margin leaves $800 before ads. After paying for the advertising, contribution is minus $200. At a 25% margin it is zero. At a 40% margin it is plus $600. These examples exclude additional period costs.

See the full 4× ROAS but no profit explanation for a breakdown of product costs, fulfillment, fees, and fixed overhead.

Which margin should I enter?

Use (net revenue minus non-ad variable costs) divided by net revenue. Include the variable costs of supplying the sales, such as products, shipping, fulfillment, and processing. Exclude the advertising spend you enter separately.

A product bought for $30 and sold for $60 has a 50% product margin, not a 100% margin. Its markup is 100%. Its pre-ad contribution margin is lower if other variable costs remain.

Use the weighted margin of the actual product mix. Deduct refunds and discounts once, and use consistent tax and shipping treatment. If a cost is already in your margin, do not enter it again under extra period costs.

How is break-even ROAS calculated?

Without extra period costs, break-even ROAS before fixed costs = 1 divided by pre-ad contribution margin. At 20%, use 1 divided by 0.20, which equals 5×.

With additional fixed dollar costs entered for the period, the calculator uses (1 + extra period costs divided by ad spend) divided by margin. For example, $1,000 spend, 40% margin, and $200 extra costs need 3× ROAS to cover those inputs. At $4,000 revenue, the remaining contribution is $400.

This assumes the margin stays constant and the extra costs are fixed amounts for the scenario. If those costs grow with sales, include them in the variable-cost margin instead. Any costs you leave out still need to be paid.

Read the break-even ROAS guide for definitions and examples.

How should a lead generation business use this?

Use revenue from customers actually won and match it to the lead or ad cohort where possible. Do not multiply every inquiry by a full deal value as though every lead becomes a customer.

If actual revenue is not available yet, an estimate might use leads × observed close rate × average revenue per customer. Label it as estimated value, disclose the assumptions, and keep it separate from realized revenue. Allow for sales delay and cancellations.

Our CRM tracking guide explains how to connect leads, qualified prospects, and completed sales.

Why do Google Ads, Meta, and GA4 show different ROAS?

They may use different attribution rules, conversion windows, dates, event definitions, consent handling, and modeled data. Two platforms can credit the same order. A repeated purchase event or incorrect currency can also distort the value.

Reconcile completed orders, refunds, and cancellations with your business records. Do not add every platform’s attributed revenue together and call it unique sales. Total business revenue divided by total media spend is a broader blended ratio; it includes sales that may not have been caused by advertising.

Use our ROAS discrepancy guide and duplicate-purchase checks to investigate the differences.

What is a good ROAS?

There is no universal number. Compare the result with your margin, cost requirements, sales maturity, and payback plan. Published client case studies illustrate particular accounts; they are not industry averages or a guarantee for another business.

For budgeting, review contribution dollars and cash requirements alongside the ratio. A larger campaign can produce more contribution at a lower ROAS, but only when the actual margin and sales support it. A bidding target is not a profitability guarantee.

Frequently asked questions

Does this calculator show final net profit?

No. It shows contribution after the ad spend and costs you entered. It cannot account for unentered overhead, financing, taxes, or other business costs.

Is 200% ROAS profitable?

200% means 2× revenue per unit of ad spend. With no extra period costs, a 50% pre-ad margin only breaks even before fixed costs. A lower margin loses contribution at that ratio.

Should I include agency fees?

Include them when evaluating business profitability. In this calculator, an agency fee can go in extra period costs if it is not included elsewhere. Keep the ad spend input as media spend so the ROAS definition stays clear.

What is the difference between ROAS and ACoS?

For positive revenue and ad spend, they are inverse ratios. ROAS is revenue divided by spend. ACoS is spend divided by revenue. A 4× ROAS corresponds to 25% ACoS.

Can I use a target ROAS as my actual result?

No. A target is a bidding instruction. Evaluate the realized value and spend separately, allowing for the conversion delay. Google’s target ROAS documentation explains how the bidding strategy works.

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