Business
ROAS Calculator
Calculate return on ad spend, and find the ROAS you actually need to break even at your margin.
Result
ROAS measures revenue, not profit. A 4× ROAS at a 20% margin loses money, which is why the break-even figure matters more than the headline number.
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About this calculator
What is a good ROAS?
Anything above your break-even ROAS, which depends entirely on your margin. At a 25% margin you need 4× just to stand still; at 60% you only need 1.7×.
Why is ROAS not the same as ROI?
ROAS compares revenue to ad spend only. ROI accounts for the cost of delivering the work as well, so it is always the lower and more honest figure.
The formula
ROAS = revenue ÷ ad spend; break-even ROAS = 1 ÷ gross margin
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