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ROAS Calculator
Free ROAS calculator to measure return on ad spend. Calculate ROAS, break-even ROAS, and target ROAS for Facebook, Google, Amazon, Meta, dropshipping, and ecommerce campaigns — in ratio, decimal, or percentage format. No sign-up, instant results.
Quick answer — What is a ROAS calculator?
A ROAS calculator is a free online tool that measures return on ad spend using the formula ROAS = Revenue ÷ Ad Spend. A ratio of 4:1 (or 400%) means $4 in revenue for every $1 spent. Break-even ROAS is the minimum return needed to cover ad costs plus your cost of goods — typically between 1.5× and 5× depending on your gross margin.
What is ROAS?
ROAS (Return on Ad Spend)is the revenue earned for every dollar spent on advertising. It's the single most important metric for evaluating paid campaigns across Facebook Ads, Google Ads, Amazon PPC, TikTok, and display networks — because it directly ties ad cost to ad-generated revenue.
A ROAS of 3 (or 3:1, or 300%) means every $1 in ad spend produced $3 in revenue. It is reported three equivalent ways:
3:1
As a ratio
3.0×
As a multiplier
300%
As a percentage
ROAS formula
ROAS = Revenue from Ads ÷ Ad Spend
ROAS % = (Revenue from Ads ÷ Ad Spend) × 100
Worked example: $2,000 Facebook spend → $8,000 revenue
ROAS = $8,000 ÷ $2,000 = 4.0 (4:1 · 400%)
How to calculate ROAS in Excel or Google Sheets
Set up four columns in your campaign tracker:
| Cell | Header / Value |
|---|---|
| A1 | Ad Spend |
| A2 | 2000 |
| B1 | Revenue |
| B2 | 8000 |
| C1 | ROAS |
| C2 | =B2/A2 |
| D1 | ROAS % |
| D2 | =(B2/A2)*100 |
For break-even: =1/GrossMargin · For required revenue at a target ROAS: =AdSpend*TargetROAS
Break-even ROAS calculator
Break-even ROAS is the minimum return needed to cover your costs — ad spend plus cost of goods sold (COGS). Going below it means losing money on every sale, even when the headline ROAS looks positive.
If your gross margin is 40%, break-even ROAS is 1 ÷ 0.40 = 2.5×. You need $2.50 in revenue for every $1 in ad spend just to cover COGS.
| Gross margin | Break-even ROAS | As percentage |
|---|---|---|
| 20% | 5.0× | 500% |
| 25% | 4.0× | 400% |
| 30% | 3.33× | 333% |
| 40% | 2.5× | 250% |
| 50% | 2.0× | 200% |
| 60% | 1.67× | 167% |
| 70% | 1.43× | 143% |
| 80% | 1.25× | 125% |
Dropshippers with 15–25% margins need ROAS of 4–6× just to break even. Digital products with 90%+ margins stay profitable at ROAS under 1.2×.
Target ROAS calculator
Target ROAS is the ROAS needed to hit your profit goals — not just break even. It factors in break-even plus a buffer for operating costs, taxes, and net profit margin.
Example: 40% gross margin, targeting 15% net margin
Target ROAS = 1 ÷ (0.40 − 0.15) = 1 ÷ 0.25 = 4.0× (400%)
What is a good ROAS? Benchmarks by channel
A good ROAS depends on gross margin, channel, and whether it includes LTV or just the first purchase.
| Channel / Industry | Typical ROAS |
|---|---|
| Ecommerce (general) | 3× to 4× |
| DTC brands (established) | 3× to 5× |
| Dropshipping | 2.5× to 4× |
| Amazon PPC (Sponsored Products) | 3× to 8× (varies by niche) |
| Facebook / Meta Ads (prospecting) | 1.5× to 3× |
| Facebook / Meta Ads (retargeting) | 4× to 10× |
| Google Search (branded) | 10× to 20×+ |
| Google Search (non-branded) | 2× to 5× |
| Google Shopping | 3× to 6× |
| B2B lead generation | 5× to 10× (pipeline value) |
| Direct mail | 5× to 10× |
Most ecommerce brands treat 3:1 as baseline, 4:1 as the profitability benchmark after operating costs, and 5:1+ as strong. Anything below break-even ROAS loses money regardless of the absolute number.
ROAS vs ROI — they're not the same
| Metric | What it measures | Formula |
|---|---|---|
| ROAS | Revenue per $1 of ad spend | Revenue ÷ Ad Spend |
| ROI | Profit per $1 of total investment | (Profit − Cost) ÷ Cost |
ACoS to ROAS converter (for Amazon sellers)
ACoS (Advertising Cost of Sale)is Amazon's inverse of ROAS — the percentage of revenue consumed by ad spend. Same relationship, opposite direction.
ROAS = 1 ÷ ACoS
ACoS = 1 ÷ ROAS
| ACoS | Equivalent ROAS |
|---|---|
| 10% | 10.0× |
| 15% | 6.67× |
| 20% | 5.0× |
| 25% | 4.0× |
| 30% | 3.33× |
| 40% | 2.5× |
| 50% | 2.0× |
| 75% | 1.33× |
| 100% | 1.0× (break-even before COGS) |
ROAS by platform and business type
ROAS for Facebook and Meta Ads
Facebook Ads Manager reports 'Purchase ROAS' based on pixel-attributed conversions. Three caveats: Meta's attribution windows (7-day click, 1-day view) can inflate ROAS relative to true incremental revenue. iOS 14.5+ signal loss means some conversions are modeled rather than measured. And cross-platform double-counting with Google or TikTok can overstate channel-level ROAS. For a cleaner figure, divide your ecommerce platform revenue during the campaign period by Facebook ad spend — not the 'Purchase value' column in Ads Manager.
ROAS for Google Ads
Google Ads reports Conversion Value ÷ Cost as its ROAS equivalent — typically more reliable than Meta's, thanks to server-side conversion tracking through Enhanced Conversions and GA4. Google's Target ROAS bidding strategy uses the target you set here as the optimization goal. Setting it too high can shrink reach; too low wastes budget. Start 20–30% above break-even ROAS and adjust weekly.
ROAS for dropshipping
Dropshipping margins run 15–30%, which makes ROAS discipline critical. A 3× ROAS on a 20%-margin dropshipping product is a loss after COGS and transaction fees. At 20% gross margin, break-even ROAS is 5×. To earn 10% net margin after ad spend, target ROAS becomes 10× — a high bar on cold traffic. Most profitable dropshipping operations beat the math with high AOV (bundles, upsells), post-purchase repeat revenue (email and SMS flows), or a gradual shift from paid to organic.
ROAS for ecommerce and DTC brands
Established ecommerce brands typically run at 3–5× blended ROAS and use LTV-adjusted ROAS — revenue across a customer's first 6–12 months divided by acquisition cost — for top-of-funnel campaigns. On that basis, a 1.5× first-order ROAS can be profitable if LTV-to-CAC is 3 or higher. For subscription and high-repeat categories (beauty, supplements, pet food), first-order ROAS of 1–2× is standard.
ROAS for B2B
B2B marketers measure ROAS against pipeline value or closed-won revenue, not first-touch revenue, because deal cycles run 30–180 days. Typical B2B ROAS targets are 5–10× on pipeline, reflecting 15–30% close rates. LinkedIn Ads often show lower raw ROAS than Meta or Google in B2B, but feed deeper pipeline. Attribution windows and multi-touch models matter more than raw ROAS here.
How to use this ROAS calculator
Enter your ad spend
Total campaign cost across the measurement period.
Enter revenue from ads
Use your ecommerce platform revenue (Shopify, WooCommerce) — not the ad platform's reported value — for the most accurate attribution.
Read ROAS in all formats
Ratio (4:1), multiplier (4.0×), and percentage (400%) — match whichever format your platform or spreadsheet uses.
Add gross margin (optional)
The calculator returns break-even ROAS and flags whether your campaign is profitable or not.
Set a target ROAS (optional)
Enter gross and net margin targets. See the revenue needed at your current ad spend to hit your profit goal.
Common ROAS mistakes
Comparing branded and non-branded ROAS
Branded search captures people already searching for your name — ROAS is naturally inflated. Don't scale budget based on branded performance; it doesn't reflect true acquisition efficiency.
Ignoring attribution windows
A 7-day click ROAS always looks better than a 1-day click ROAS. Use consistent windows when comparing platforms or time periods.
Using revenue instead of gross profit
A 4× ROAS on 20% margins is a loss after COGS. Always cross-check against break-even ROAS for your margin profile.
Counting cross-platform conversions twice
If Meta and Google both claim the same sale, your total reported ROAS is overstated. Reconcile against ecommerce platform revenue, not the sum of ad-platform reports.
Optimizing for ROAS at the cost of volume
Target ROAS bidding can shrink audiences to only the highest-intent users, stifling growth. Blend ROAS targets with absolute revenue goals, especially for brands in growth mode.
Frequently asked questions
What is a ROAS calculator?
A ROAS calculator is a free online tool that computes return on ad spend — revenue divided by advertising cost. It helps marketers evaluate campaign efficiency, set break-even targets, and compare channels (Facebook, Google, Amazon, TikTok) on the same metric.
How do I calculate ROAS?
Divide total campaign revenue by total ad spend. Multiply by 100 for the percentage form. Example: $6,000 revenue ÷ $1,500 spend = 4.0 ROAS (or 400%, or 4:1).
What is a good ROAS?
Baseline is 3:1 (300%) for most ecommerce brands. Strong is 4–5×. Below break-even ROAS (1 ÷ your gross margin) you're losing money regardless of the headline figure. B2B targets 5–10× on pipeline value; Amazon PPC ranges 3–8× depending on niche and margin after Amazon fees.
How do I calculate break-even ROAS?
Break-even ROAS = 1 ÷ Gross Margin. At 40% margin, break-even is 2.5×. At 25% margin, break-even is 4×. At 20% margin (typical dropshipping), break-even is 5×.
How is ROAS different from ROI?
ROAS measures revenue per ad dollar; ROI measures profit per total dollar invested. ROAS ignores COGS and operating costs; ROI includes them. ROAS is a channel metric; ROI is a business metric. Always look at both — never one in isolation.
How do I calculate ROAS in Excel or Google Sheets?
Put ad spend in cell A2 and revenue in cell B2. Enter =B2/A2 in C2 for ROAS, =(B2/A2)*100 in D2 for the percentage. Drag the formulas down your campaign list to calculate ROAS for every row.
How do I calculate ROAS for Facebook Ads?
Use revenue reported by your ecommerce platform (Shopify, WooCommerce) during the campaign window, divided by your Facebook ad spend. Facebook's in-platform Purchase ROAS can overstate true attribution because of 7-day click windows and cross-device modeling.
What's the difference between ACoS and ROAS?
They're inverses. ROAS = 1 ÷ ACoS. A 25% ACoS equals a 4× ROAS. Amazon sellers report in ACoS; Meta and Google report in ROAS. Use the ACoS tab in this calculator to convert between them instantly.
What's a good ROAS for dropshipping?
With 15–30% margins, dropshipping break-even ROAS is 3.3–6.7×. Profitable dropshipping on cold traffic typically needs 4–8× ROAS, supplemented by email, SMS, and post-purchase repeat-order flows.
How do I calculate target ROAS?
Target ROAS = 1 ÷ (Gross Margin − Desired Net Margin). At 40% gross margin and 15% target net margin: 1 ÷ (0.40 − 0.15) = 4.0, so target ROAS is 400%.
Is this ROAS calculator free?
Yes. No sign-up, no email, unlimited use. Works in 50+ currencies and supports ratio, decimal, and percentage output formats.
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Calculate your ROAS in seconds — free, no sign-up
Enter your ad spend and revenue above to get ROAS in ratio, decimal, and percentage format. Add your gross margin to check profitability against break-even. Use the Target ROAS tab to set bidding goals, or the ACoS tab to convert Amazon metrics to the same scale as Meta and Google.
↑ Calculate ROAS nowFor informational and educational use. Attribution accuracy, cross-platform double-counting, and LTV effects all influence true ROAS — always reconcile against your ecommerce platform's revenue rather than ad-platform reports alone.