Free tool

ROAS Calculator

Most ROAS calculators stop at revenue ÷ spend — a vanity number that hides whether you actually make money. This one computes your breakeven ROAS from your margin and your real profit on ad spend (POAS). Updates live as you type.

How this calculator works

Four numbers, two of which most teams never calculate.

ROAS = revenue ÷ ad spend — the headline ratio. Useful but incomplete.
Breakeven ROAS = 1 ÷ gross margin — the ROAS at which you neither make nor lose money on the product cost. At 45% margin, breakeven is 2.22x.
POAS = (revenue × margin) ÷ ad spend — profit on ad spend. The number that actually predicts whether scaling spend grows your bank balance.
Gross profit after ad spend = (revenue × margin) − ad spend — the dollars left after COGS and media.

Why it matters: a 4x ROAS feels great until you realize that on a 25%-margin product, breakeven is 4.0x — so you made exactly zero. The blended dashboard ROAS hides this. We rebuild reporting around POAS and contribution margin so spend decisions are anchored to profit, not revenue theater.

FAQ

What is a good ROAS?

There is no universal "good" ROAS — it depends entirely on your gross margin. A business with 70% margin breaks even at 1.43x ROAS; a business with 25% margin needs 4x just to break even. The only meaningful target is "above your breakeven ROAS by enough to cover overhead and profit." This calculator computes your breakeven first, then tells you whether your actual ROAS clears it.

What is the difference between ROAS and POAS?

ROAS = revenue ÷ ad spend. POAS = gross profit ÷ ad spend. ROAS counts top-line revenue, which is misleading because a 4x ROAS on a 20%-margin product still loses money after COGS. POAS (Profit on Ad Spend) is the metric that actually predicts whether scaling spend grows or shrinks your bank balance. We surface both.

How do I calculate breakeven ROAS?

Breakeven ROAS = 1 ÷ gross margin %. At 50% margin, breakeven is 2.0x — every $1 of spend must return $2 of revenue just to not lose money (before overhead). Anything below breakeven means you pay to acquire customers at a loss, which is only viable if LTV from repeat purchases justifies it.

Should I include overhead and shipping in the margin?

For the most honest number, yes — use contribution margin: revenue minus COGS, payment processing, shipping, and fulfillment. Many businesses calculate "gross margin" on COGS alone and then wonder why a 3x ROAS is not making them money. Be conservative with the margin input and the breakeven ROAS will be realistic.

Can you audit my actual ROAS by campaign?

Yes — we run a free audit of your Google Ads / Meta account that breaks ROAS down by campaign, ad set and (for e-com) SKU tier, weighted by real contribution margin. Most accounts have a few campaigns quietly running below breakeven that drag the blended number down. Book below.

Is your blended ROAS hiding losers?

We run a free audit that breaks your ROAS down by campaign and SKU tier, weighted by real contribution margin. Most accounts have 2-3 campaigns below breakeven dragging the average.

Book a free audit → Budget calculator