Enter revenue and ad spend
Use figures from the same campaign, attribution model and reporting period.
ROAS Calculator with Break-Even & Profit
Calculate return on ad spend as a multiple and percentage. Add gross margin to estimate break-even ROAS, target ROAS and profit after advertising costs.
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Revenue
Ad spend
ROAS
Calculate ROAS and advertising profit
Revenue or conversion value attributed to the same campaign period.
Advertising cost for the same campaign and date range.
Optional. Used only for CPA and average order or conversion value.
Currency changes formatting only; no exchange-rate conversion occurs.
Percentage of revenue left after COGS and included variable costs, before advertising.
Desired campaign profit as a percentage of revenue after the ad cost is deducted.
Return on ad spend
4.00x
400.0%
Every $1.00 in ad spend produced $4.00 in revenue.
ROAS is not the same as profit
Open Profit & Break-even mode and enter a gross margin to evaluate profitability.
Formulas used by this calculator
The profit formulas assume the gross margin includes every product, fulfilment, payment and other variable cost you want deducted before advertising.
ROAS = Revenue ÷ Ad Spend
Break-even ROAS = 1 ÷ Gross Margin
Profit After Ads = (Revenue × Gross Margin) − Ad Spend
Target ROAS = 1 ÷ (Gross Margin − Target Profit Margin)
How to use the ROAS Calculator
Add conversions if available
The calculator uses conversions to show CPA and average conversion value.
Check profit mode
Add gross margin and a desired profit margin to calculate break-even and target ROAS.
ROAS and break-even example
A campaign generates $4,000 from $1,000 in ad spend. Its ROAS is 4.00x, which is also 400%. With a 40% gross margin, the campaign produces $1,600 before ads and $600 after ad spend. Break-even ROAS is 2.50x. To retain a 10% profit margin after ads, target ROAS is 3.33x.
How to interpret ROAS accurately
ROAS measures revenue return, not complete business profitability. A campaign can show a high ROAS and still lose money when product cost, fulfilment, discounts, payment fees, returns or other variable costs leave a low gross margin.
For the profit estimate to be useful, enter a gross margin that reflects the costs you want included. Fixed overhead, taxes, agency fees and lifetime customer value are not added automatically.
When comparing this calculator with Google Ads or another platform, use the same date range, attribution model and conversion-value definition. Different reporting settings can produce different revenue and ROAS values.
Frequently asked questions
ROAS means return on ad spend. It compares the revenue or conversion value attributed to an advertising campaign with its ad cost.
Divide campaign revenue by ad spend. Revenue of 4,000 divided by ad spend of 1,000 equals 4.00x ROAS, or 400%.
Convert gross margin to a decimal and divide 1 by that margin. A 40% margin is 0.40, so break-even ROAS is 1 ÷ 0.40 = 2.50x.
The desired profit margin after ads is subtracted from gross margin before calculating target ROAS. At 40% gross margin and a 10% desired after-ad profit margin, target ROAS is 1 ÷ (0.40 − 0.10) = 3.33x.
No. Profitability depends on gross margin and which costs are included. ROAS alone does not account for product cost, fulfilment, payment fees, returns, overhead or taxes.
The multiple and percentage express the same relationship. A 4.00x ROAS equals 400%, and a 2.50x ROAS equals 250%.
Yes. Calculations run locally in your browser. Humanify.pro does not upload or store the campaign figures you enter.