ROAS calculator
Get ROAS, ACOS and — the part most calculators skip — the break-even ROAS your margin demands.
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Revenue and spend give ROAS. Add your gross margin to see whether that ROAS is actually profitable.
The share of revenue left after the cost of the product itself — not counting ad spend.
Add your gross margin to see the ROAS you actually need, not just the one you have.
What this tool does
It gives you return on ad spend and ACOS from revenue and spend, and then the number most calculators leave out: the break-even ROAS your margin requires. Without that, a ROAS figure is just a ratio with no verdict attached.
Why break-even is the only benchmark that means anything
Ask five marketers what a good ROAS is and you will get five numbers, all of them wrong for your business. The arithmetic is not negotiable: if your gross margin is 25%, every €1 of revenue leaves €0.25 to pay for the advertising, so you need 4× before the campaign has paid for itself. At a 60% margin, break-even sits at 1.67×.
This is why the same 3× ROAS can be a triumph or a slow bleed. The calculator marks which side of your line you are on, and shows the gross profit left after ad spend.
What ROAS still will not tell you
It ignores everything that is not media cost. Creative production, agency retainers, the platform’s own tooling fees, shipping, payment processing and returns all sit outside the formula. A campaign running exactly at break-even ROAS is losing money on all of them.
It also ignores time. A subscription business acquiring customers at a first-order ROAS below break-even can be perfectly healthy — provided the second and third orders exist. If that is your model, look at customer acquisition cost against lifetime value instead.
Questions
What is a good ROAS?
There is no universal number, and any article quoting one is guessing at your margin. A 2× ROAS is excellent on a 70% margin product and ruinous on a 30% margin one. The only meaningful benchmark is your own break-even, which this calculator gives you from your gross margin.
How is break-even ROAS calculated?
One hundred divided by your gross margin percentage. At a 25% margin you need 4× just to cover the cost of goods; at 50% you need 2×. Below that line every additional sale increases the loss.
What is the difference between ROAS and ACOS?
They are the same relationship inverted. ROAS is revenue divided by spend, ACOS is spend divided by revenue as a percentage. Amazon sellers usually think in ACOS, Google and Meta advertisers in ROAS. A 4× ROAS is a 25% ACOS.
Should I use revenue or profit in the calculation?
ROAS is conventionally revenue-based, which is exactly why it flatters campaigns. Entering your gross margin here converts it into the number that matters — whether the campaign made money after the product was paid for.
Why is my ROAS good but the business is not making money?
Usually because ROAS counts only ad spend. Agency fees, creative production, platform tools, shipping and returns sit outside it. A campaign at break-even ROAS is losing money once those are included.