Advertising tool

ROAS is only good news above break-even.

A 3x return sounds healthy until your margin says you needed 4x to stand still. This works out your break-even ROAS first, then tells you whether the campaign actually made money.

  • Free, no sign-up
  • Margin-aware
  • ROAS, ACOS and CPA

ROAS calculator

Free
What is left after the cost of the goods, before ad spend.
4.00xROAS
2.22xBreak-even ROAS
25.0%ACOS
25.00Cost per acquisition
3,600.00Gross profit
1,600.00Profit after ad spend
100.00Average order value
80.0%Headroom over break-even
Runs entirely in your browser. Nothing is uploaded.

Worth knowing

Reading the number honestly.

  1. 01

    Break-even ROAS is 1 divided by your margin

    At a 45% gross margin you need 1 ÷ 0.45 = 2.22x just to get your money back. At a 25% margin you need 4x. This is why one advertiser celebrates a 3x return and another is quietly losing money on the same number — the margin, not the ROAS, decides which.

  2. 02

    ROAS ignores every cost that is not media

    Platform fees, creative production, agency retainers, shipping and returns all sit outside the ROAS calculation. A campaign at exactly break-even ROAS has, in reality, lost money once those land. Treat break-even as the floor you must clear comfortably, not the target.

  3. 03

    Attribution decides the revenue number, so question it

    The revenue figure comes from whichever attribution window the platform used, and platforms are graded on their own homework. If Meta, Google and your own analytics all claim the same sale, the honest total is lower than the sum of the three dashboards.

Questions

About this tool.

ROAS = revenue attributed to the campaign ÷ ad spend. Spend $2,000 to generate $8,000 and the ROAS is 4x. It is a revenue ratio, not a profit ratio.
The ROAS at which the campaign exactly repays its own cost, given your gross margin: 1 ÷ gross margin. Below it you are paying for the privilege of making sales.
They are reciprocals expressed differently. ACOS = ad spend ÷ revenue × 100, so a 4x ROAS is a 25% ACOS. Amazon sellers tend to work in ACOS, Meta and Google advertisers in ROAS.
Any figure comfortably above your break-even ROAS, which depends on your margin. A 2x on a 70% margin product is profitable; a 3x on a 25% margin product is not. That is the whole reason this calculator asks for margin.

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