Business

ROAS Calculator

Calculate Return on Ad Spend (ROAS) and optional break-even ROAS using gross margin.

Last reviewed by the Radiatus Cloud team

Output

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Calculate return on ad spend

ROAS, return on ad spend, measures the revenue generated per unit of advertising cost, and it is the headline efficiency metric for ad campaigns. This calculator computes ROAS and optional break-even ROAS, so you know whether your advertising pays.

Why ROAS and break-even ROAS both matter

ROAS is revenue divided by ad spend, so a ROAS of 4 means four units of revenue per unit spent. But revenue is not profit, so a healthy-looking ROAS can still lose money once product costs and margins are accounted for. Break-even ROAS is the ROAS at which the campaign exactly covers its costs given your margin, and comparing your actual ROAS to it tells you whether you are truly profitable, not just generating revenue. This distinction is where a lot of ad spending goes wrong, so seeing both is essential.

A planning estimate

This is an estimate for planning from the figures you enter, not financial or business advice. Real outcomes depend on factors beyond any single calculation, so treat the result as a guide. The calculation runs entirely in your browser, so your figures are never uploaded and stay on your own machine, which matters for business numbers you would not want to share.

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Frequently Asked Questions

What is ROAS?

Return on ad spend: the revenue generated per unit of ad cost. A ROAS of 4 means four in revenue for every one spent on ads.

Why is a good ROAS not always profitable?

Because revenue is not profit. Once product costs and margin are accounted for, a healthy-looking ROAS can still lose money.

What is break-even ROAS?

The ROAS at which a campaign exactly covers its costs given your margin. Comparing actual ROAS to it shows whether you truly profit.

How is ROAS calculated?

By dividing revenue attributed to the ads by the ad spend. The calculator also computes the break-even ROAS from your margin.

Is my data uploaded?

No. The calculation runs entirely in your browser.

Privacy & Security

Calculated locally in your browser. No data is sent to any server.

Data: None
Client-side-Side
Active
v1.0

How to Use

Enter ad spend and revenue to calculate ROAS.

Disclaimer: This tool is provided "as is" without warranty of any kind. Results are for educational and utility purposes.