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ROAS calculator.
Work out your return on ad spend, the ROAS you need to break even, and whether your ads make money. Free, no sign-up, and the numbers you type stay in your browser.
How to calculate ROAS
ROAS (return on ad spend) is the revenue your ads bring in, divided by what you spent on them:
ROAS = revenue from ads ÷ ad spend
Example (made-up numbers): you spend $2,000 on ads in a month and they bring in $7,000 in sales. ROAS = 7,000 ÷ 2,000 = 3.5. That is written as 3.5x, 350% or 3.5:1, and means every $1 of ads brought back $3.50 in revenue.
What is break-even ROAS?
Revenue is not profit. Break-even ROAS is the lowest ROAS at which the profit from your sales just covers the ad spend:
Break-even ROAS = 1 ÷ profit margin
With a 35% margin, break-even ROAS is 1 ÷ 0.35 = 2.86x. The 3.5x campaign above clears it, so it makes money: $7,000 × 35% = $2,450 of profit before ad costs, minus $2,000 of ad spend, leaves $450.
| Profit margin | Break-even ROAS |
|---|---|
| 10% | 10.00x |
| 20% | 5.00x |
| 25% | 4.00x |
| 30% | 3.33x |
| 40% | 2.50x |
| 50% | 2.00x |
| 60% | 1.67x |
| 75% | 1.33x |
What is a good ROAS?
There is no single good number, because it depends on your margin. A good ROAS sits comfortably above your break-even ROAS, with room left for other costs such as staff, software and returns. You will often see 4x quoted as a rule of thumb, but 4x only makes money if your margin is above 25%. A business with a 60% margin makes money above about 1.67x.
ROAS vs ROI
ROAS looks at revenue. ROI (return on investment) looks at profit: ROI = (profit − cost) ÷ cost. In the example, the ads cost $2,000 and brought in $2,450 of profit before ad costs, so ROI = ($2,450 − $2,000) ÷ $2,000 = 22.5%. A ROAS of 3.5x and an ROI of 22.5% describe the same campaign.
How to improve your ROAS
- Cut the search terms and audiences that spend money without bringing sales.
- Raise the average order value with bundles, upsells or a free-shipping threshold.
- Make the landing page match the ad, load fast and ask for one clear action.
- Move budget to the campaigns and products with the best ROAS, and track sales properly so the numbers are real.
Writing new search ads? Check them in our free Responsive Search Ad preview tool.
Common questions
What does ROAS mean?
ROAS stands for return on ad spend. It is the revenue your ads bring in for every dollar you spend on them. A ROAS of 3x means $3 of revenue for each $1 of ad spend.
How do you calculate break-even ROAS?
Divide 1 by your profit margin. With a 40% margin, break-even ROAS is 1 ÷ 0.40 = 2.5x. Below that ROAS, your ads cost more than the profit they bring in.
Is ROAS the same as ROI?
No. ROAS uses revenue, so it does not show whether you made money. ROI uses profit after costs. A campaign with a ROAS of 2x still loses money if your margin is below 50%.
What is a good ROAS for Google Ads?
The same rule applies to Google Ads, Meta and LinkedIn: a good ROAS is above your break-even ROAS, with room left for other costs. Work out your break-even ROAS from your margin, then aim above it.
What profit margin should I enter?
The share of each sale you keep after the cost of the product or service, before ad costs. If you sell something for $100 and it costs you $60 to make and deliver, your margin is 40%.
Is my data saved anywhere?
No. The calculator runs in your browser. Nothing you type is sent to us or saved.
Is the calculator free?
Yes. There is no sign-up and no limit.
Want help reaching a profitable ROAS?
We build and manage Google Ads campaigns around cost per enquiry.