Free ROAS & Break-even ROAS Calculator
Work out your return on ad spend, your break-even ROAS, and whether you are actually making money, live as you type. Enter your ad spend, revenue, and gross margin to see your ROAS, profit, a verdict, and the exact spend to reach your target profit.
Optional costs
ROAS
3.50x
Break-even ROAS
2.22x
Profit ROAS
1.57x
CPA
$21
To hit $5,000 profit
Spend about $8,696 at this efficiency (revenue near $30,435).
Break-even ROAS = 1 / gross margin. All math runs in your browser.
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The numbers that decide whether you can profitably scale, in one page.
How to calculate ROAS
ROAS (return on ad spend) is simply revenue divided by ad spend. Spend $1,000 and make $4,000 from those ads and your ROAS is 4, or 4x. It is a top-line efficiency number, not profit, so it only means something next to your margin and costs - which is what this calculator adds.
The break-even ROAS formula
Break-even ROAS is 1 divided by your gross margin. At a 40% margin your break-even ROAS is 1 / 0.40 = 2.5, so every $1 of ad spend must return $2.50 in revenue just to cover the cost of goods plus the ad. Above 2.5x you make money; below it you lose money.
A worked example
You spend $1,000, earn $3,500, and run a 45% gross margin. ROAS is 3.5x. Break-even ROAS is 1 / 0.45 = 2.22x, so you are above water. Gross profit on that revenue is $1,575; subtract the $1,000 of ad spend and you keep roughly $575 in profit. Because you are comfortably above break-even, you have room to scale.
What is a good ROAS?
There is no universal number - a good ROAS is one above your break-even ROAS. A 4x ROAS is excellent at a 30% margin but only break-even at a 25% margin. Always compare your ROAS to your own break-even point rather than a generic benchmark.
ROAS vs ACoS
ROAS and ACoS are inverses of each other. ROAS is revenue / ad spend; ACoS (advertising cost of sale) is ad spend / revenue, shown as a percentage. A 4x ROAS is the same as a 25% ACoS. Meta marketers usually talk in ROAS, Amazon sellers in ACoS.
Converting ROAS to CPA
CPA (cost per acquisition) is ad spend divided by orders. Since orders equal revenue / average order value, CPA also equals AOV / ROAS. At a $75 AOV and a 3x ROAS, your CPA is about $25. The calculator above shows your CPA automatically once you enter an average order value.
The quick answer
Break-even ROAS is the return on ad spend at which you neither make nor lose money. The formula is 1 divided by your gross margin: at a 40% margin, break-even ROAS is 2.5, so every $1 of ad spend must bring back $2.50 in revenue just to break even.
Frequently asked questions
What is ROAS and how is it calculated?
ROAS (return on ad spend) is revenue divided by ad spend. If you spend $1,000 and earn $4,000 from those ads, your ROAS is 4, or 4x. It measures top-line efficiency, not profit, so always read it next to your margin.
What is break-even ROAS?
Break-even ROAS is the ROAS where ad-driven gross profit exactly equals ad spend. It is 1 divided by your gross margin: a 50% margin means a break-even ROAS of 2, a 40% margin means 2.5. Below it you lose money, above it you profit.
What is a good ROAS?
It depends entirely on your margin. A 4x ROAS is great at a 30% margin but only break-even at a 25% margin. Compare your ROAS to your break-even ROAS, not to a generic benchmark. Anything comfortably above break-even leaves room to scale.
What is the difference between ROAS and ACoS?
They are inverses. ROAS is revenue divided by ad spend; ACoS (advertising cost of sale) is ad spend divided by revenue, shown as a percentage. A 4x ROAS equals a 25% ACoS. ROAS is common on Meta, ACoS on Amazon.
How do I convert ROAS to CPA?
CPA (cost per acquisition) is ad spend divided by the number of orders. If you know your average order value, orders equal revenue divided by AOV, so CPA equals AOV divided by ROAS. This calculator shows your CPA automatically.
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