About this tool
The ROAS Calculator divides the revenue an advertising campaign generated by what the campaign cost, giving return on ad spend as both a multiple (5×) and a percentage (500%). It solves the other way too: enter a target ROAS and a budget to see the revenue it implies, or a revenue goal and a ROAS to see the spend you can afford. It is for e-commerce and performance marketers judging a channel, for owners who want to know whether a high ROAS actually left any profit once goods were paid for, and for anyone confused by the difference between ROAS and ROI. Enter your cost of goods as a percentage of revenue and the page shows profit after ad spend, profit after both ads and goods, the break-even ROAS your margin requires, and the true return on investment. A sensitivity table shows what each ROAS level would mean at your spend.
How it works
ROAS = revenue ÷ ad spend; the percentage form is the same number × 100. Solving for revenue gives revenue = ROAS × spend, and for spend gives spend = revenue ÷ ROAS. Profit after ads = revenue − spend. With cost of goods sold at a fraction c of revenue, profit after goods and ads = revenue × (1 − c) − spend, break-even ROAS = 1 ÷ (1 − c), and ROI on ad spend = profit after goods and ads ÷ spend, which simplifies to ROAS × (1 − c) − 1. ACoS, the advertising cost of sales used on Amazon, is the reciprocal of ROAS: spend ÷ revenue. The currency symbol is display only; no exchange rates are applied.
Frequently asked questions
What is a good ROAS?
It depends on your margin. A store with 40% cost of goods breaks even at a ROAS of 1.67 and needs something like 3 to 4 to fund overheads and profit; a business with 80% cost of goods breaks even at 5. Digital products and services with tiny marginal costs can be profitable at a ROAS under 2. Judge a ROAS against your own break-even, not against a universal benchmark.
What is the difference between ROAS and ROI?
ROAS treats revenue as the return: revenue ÷ spend. ROI treats profit as the return: (revenue − costs − spend) ÷ spend. A 5× ROAS with 40% cost of goods is a 200% ROI: 5,000 revenue minus 2,000 goods minus 1,000 ads leaves 2,000 profit on 1,000 spent. ROAS is quick and easy to read from an ad platform; ROI tells you whether the money was actually well spent.
Why is ROAS sometimes written as a percentage?
Both forms express the same ratio. A ROAS of 4 means 4.00 of revenue per 1.00 of ad spend; written as a percentage it is 400%. Platforms differ: Google Ads reports conversion value per cost as a decimal, many agencies quote a multiple, and some dashboards show a percentage. Read the unit before comparing numbers.
Which revenue should I count for ROAS?
The revenue the platform attributes to the ads, measured consistently. Attribution windows (1-day vs 28-day), view-through credit, and returns all change the number, so a ROAS from one platform is rarely comparable with another. For a business-level view, compare total revenue over the period with total ad spend to get a blended ROAS, which is usually lower than any platform's own figure.