ROAS Calculator for Ecommerce
Calculate your Return on Ad Spend and find out if it's above the minimum needed to be profitable — based on your specific gross margin.
Enter your data and click "Calculate ROAS" to see results
What is ROAS and what does it measure?
ROAS (Return on Ad Spend) is the ratio between the revenue generated by a campaign and the ad spend. A ROAS of 4x means that for every dollar you spend on ads, you get $4 in revenue.
The key limitation of ROAS: it only measures revenue, not profit. You can have a high ROAS and still be losing money if your product margin is low.
ROAS formula
ROAS = Revenue ÷ Ad Spend
Minimum profitable ROAS by margin
| Gross margin | Min. ROAS to break even |
|---|---|
| 20% | 5x |
| 25% | 4x |
| 30% | 3.33x |
| 40% | 2.5x |
| 50% | 2x |
| 60% | 1.67x |
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What ROAS do you need?
Learn how to calculate the minimum ROAS that makes your campaigns profitable for your specific margins.
Read the guide →