Ad ROI & ROAS calculator

ROAS (Return on Ad Spend) shows how many times your ad spend comes back as revenue: revenue from ads ÷ ad spend. If you spent 10,000 and made 40,000 in revenue, your ROAS is 4x. ROAS looks at revenue, not profit — to see profit you also need to factor in margin, which is why our calculator shows ROI and net profit alongside ROAS.

ROI (return on investment) is based on profit: (net profit ÷ ad spend) × 100. Net profit = (revenue × gross margin) − ad spend. So instead of just "how much money came in," it answers "what did I actually keep from this." Enter your budget, conversion rate, average order value and margin, and the calculator shows your ROI and the minimum conversion rate you need to break even.

There is no single right number; a good ROAS depends on your margin. Roughly, break-even ROAS = 1 ÷ gross margin. At a 25% margin, break-even ROAS is 4x — you need to clear 4x to be profitable. High-margin businesses can be profitable at a lower ROAS, while low-margin businesses need a much higher one. That is why calculating with your own numbers beats relying on an "industry average."