Calculate your Return on Ad Spend (ROAS) and find your break-even ROAS to ensure ad campaigns on Google, Facebook, and TikTok are actually generating profit.
ROAS (Return on Ad Spend) measures gross revenue explicitly from ads vs. ad cost. ROI considers total profit (after all expenses) vs. total investment. ROAS looks at ad efficiency; ROI looks at business profitability.
There's no single good ROAS — it depends entirely on your profit margin. A 4:1 ROAS is often cited as a rough rule of thumb, but the number that actually matters is your break-even ROAS (1 ÷ gross margin): anything above that is profitable, anything below it is a loss regardless of how good the ROAS looks. Enter your profit margin in this calculator to see your specific break-even target.
Break-even ROAS = 1 / Gross Margin. If your gross margin is 40% (0.40), your break-even ROAS is 2.5 — meaning you need $2.50 in revenue for every $1 spent on ads just to cover product cost. Enter your margin in this calculator to find your specific break-even target.
ROAS alone does not tell you if you are profitable. A 3:1 ROAS on a 50% margin product is very profitable, but the same ROAS on a 20% margin product loses money. Use the break-even ROAS feature to find the minimum ROAS needed to stay profitable given your margin.
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Yes. The ROAS Calculator is free to use with no sign-up required. A free account adds more calculation history, multiple workspaces, and access to your saved data from any device.
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ROAS Calculator
Calculate Return on Ad Spend for marketing campaigns.