Marketing ROI & ROAS Calculator

Measure the true profitability of your advertising campaigns. Calculate ROAS, net campaign profit, and your break-even return threshold.

Inputs

Worked examples

E-commerce Google Ads ($2,500 Spend for $10,500 Revenue)

An online store spends $2,500 on search ads generating $10,500 in tracked order revenue. Result: 4.20x ROAS (420%) · $2,225 Net Profit.

ROAS = $10,500 ÷ $2,500 = 4.20x. Gross Profit from revenue = $4,725. Net profit after ad spend = $2,225.

Break-Even ROAS Calculation with 40% Margin

A product has a 40% gross margin. What is the minimum ROAS needed to avoid losing money on ads? Result: Break-Even ROAS = 2.50x (250%).

Formula: Break-even ROAS = 1 ÷ Profit Margin = 1 ÷ 0.40 = 2.50x ($2.50 revenue per $1 ad spend).

Frequently asked questions

What is a "good" ROAS?

A standard benchmark is 4:1 (400% ROAS, or $4 revenue per $1 spent). However, high-margin businesses (like SaaS or digital downloads) can thrive at a 2.5× ROAS, while low-margin retail businesses may require 5× or higher to be profitable.

How is ROAS different from ROI?

ROAS measures gross revenue generated per ad dollar (e.g. $10,000 revenue on $2,500 spend = 4.0×). ROI measures net profit after ALL expenses including product fulfillment, software, and overhead.

What is the formula to calculate Break-Even ROAS?

Break-Even ROAS = 1 ÷ (Gross Profit Margin % ÷ 100). For example, if your product gross margin is 40% (0.40), your Break-Even ROAS is 1 ÷ 0.40 = 2.50× (or 250%). Any ROAS above 2.50× generates net profit.

How do you calculate ROAS percentage from ratio?

Multiply the ROAS ratio by 100. For example, a 3.5× ROAS is 350%, meaning every $1 invested returns $3.50 in revenue.