Free toolUpdated

ROAS Calculator with Break-Even ROAS and Profit

Calculate ROAS, break-even ROAS and profit after ads from your margin. Free, runs in your browser, with worked examples for stores and lead gen.

Calculate your ROAS

Free. Runs in your browser: nothing is saved or sent.

Your ad numbers

What you spent on ads for the period.

Revenue or conversion value your ads were credited with, for the same dates.

Share of each sale left after product cost, shipping and payment fees. Not sure? Use the margin helper.

Not sure of your margin? Use the margin helper
Your margin
Add price and product cost

Margin = (price - product cost - shipping - other costs - payment fee) / price. Leave a cost blank if it does not apply.

More costs and goals
Optional

Share of revenue that gets refunded.

Optional

As a share of ad spend.

Optional

Profit you want after ads, as a share of revenue after refunds. Adds a target ROAS.

Optional

Adds your break-even cost per order.

Amounts are in US dollars. The ratios work in any currency.

Your result

Example numbers. Replace them with yours.
At or above target

At or above your target of 3.33x.

Break-even 2.50xTarget 3.33x0.00x5.00x
4.00x
400% · $4.00 of revenue per $1 of ad spend
Break-even ROAS
2.50x
Needs $12,500 of revenue at this spend
Profit after ads
Profit
$3,000
Before overhead
Margin after ads
15%
ROI on ad spend
60%
Target ROAS
3.33x
ACoS (spend / revenue)
25%

The link holds your numbers, so share it only with people you want to see them.

Profit at any ROAS

Hover, touch or use the arrow keys to read exact values.

-$5,000$0$5,0000x2x4x6xROAS$0 profitBreak-even 2.50xTarget 3.33xYou 4.00x
Jump to
At $5,000 of ad spend, profit crosses $0 at 2.50x. You are at 4.00x, a profit of $3,000. The line is straight: each extra 1.00x of ROAS adds $2,000 of profit. Your target ROAS is 3.33x.

At $5,000 of ad spend, profit crosses $0 at 2.50x. You are at 4.00x, a profit of $3,000.

What if...

Tap a scenario to try it on your numbers and watch the verdict change.

The numbers you see first are an example. Replace them with yours. Margin is the share of each sale left after product cost (also called cost of goods sold, or COGS), shipping and payment fees, before ad spend. Not sure of yours? Open the margin helper. Amounts are in dollars, but the ratios work in any currency.

This is a free tool with no account, and it runs in your browser. Nothing you type is saved or sent. When you are done, copy the result as a note for a client, copy a link that restores your numbers, or print it.

How to read your result

Your result lands in one of three places:

  • Below break-even. Each ad dollar returns less than it costs at your margin.
  • At break-even. The ads return exactly what they cost.
  • Above break-even. The ads cover their cost. If you set a profit goal, the calculator also shows your target ROAS and whether you reached it.

All three are before overhead. Rent, salaries, software and other fixed costs are not in the math, so a result above break-even is not yet profit for the whole business.

If you are below break-even, only two numbers can move you: the margin on each sale, or the revenue each ad dollar brings back.

Is your ROAS good? Read it against your margin

A ROAS is good when it clears your own break-even with room to spare. Break-even ROAS is 1 divided by your margin, so the answer changes with every business. This table is computed from the formulas below, not taken from industry benchmarks. It shows break-even ROAS for each margin, and the ROAS needed to keep 10% of revenue as profit after ads.

Break-even ROAS and the ROAS needed for a 10% profit after ads, by gross margin. Computed from the formulas on this page, not industry benchmarks.
Gross marginBreak-even ROASROAS for 10% profit
20%
5.00x
10.00x
25%
4.00x
6.67x
30%
3.33x
5.00x
40%
2.50x
3.33x
50%
2.00x
2.50x
60%
1.67x
2.00x
70%
1.43x
1.67x
80%
1.25x
1.43x

Find your margin, then compare. A ROAS below the break-even column loses money on ads. A ROAS between the two columns covers its cost but misses a 10% profit goal. At a 40% margin, those lines are 2.50x and 3.33x.

The same 4x can make money or lose it

Example: two stores each spend $5,000 on ads and bring in $20,000 in revenue. Both have a ROAS of 4.00x, or 400%.

The first store has a 40% margin. It keeps $8,000 after product costs, then pays $5,000 for ads, leaving $3,000. The second has a 25% margin. It keeps $5,000 and pays $5,000 for ads, leaving exactly $0. Same ROAS, different outcome.

Why the right ROAS is not one universal number

Break-even moves with your margin, your refunds and any fees you pay. A thin-margin store needs a much higher ROAS than a high-margin one, and a business with repeat sales may accept less on the first order. A ROAS quoted without a margin tells you very little. Find your break-even first, then decide how much room above it you want.

The formulas behind the calculator

These are standard marketing math. Margin and rates are written as decimals, so 40% is 0.40.

  • ROAS = revenue from ads ÷ ad spend. $20,000 ÷ $5,000 = 4.00, shown as 4.00x or 400%.
  • Break-even ROAS = 1 ÷ margin. At 0.40, that is 2.50x.
  • Target ROAS = 1 ÷ (margin - profit goal). At 0.40 with a 0.10 goal, that is 1 ÷ 0.30 = 3.33x.
  • Profit after ads = revenue × margin - ad spend.
  • ACoS = ad spend ÷ revenue, the inverse of ROAS. 4.00x is 25%.

Refunds and fees push break-even up. With a refund rate and a fee paid as a share of ad spend, break-even ROAS = (1 + fee rate) ÷ ((1 - refund rate) × margin).

Example: $1,000 of spend, $4,000 of revenue, a 50% margin, 10% refunds and a 10% fee. Revenue after refunds is $3,600, and spend plus fee is $1,100. Profit is $3,600 × 0.50 - $1,100 = $700. Break-even is 1.1 ÷ (0.9 × 0.5) = 2.44x, against 2.00x with no refunds or fees.

Last verified: November 11, 2026.

Worked examples

Every figure below is an example with made-up numbers, not a result.

Example: an online store at a 40% margin

The store spends $5,000 on ads, earns $20,000 in revenue and has a 40% margin.

MeasureResultWorking
ROAS4.00x (400%)$20,000 ÷ $5,000
Break-even ROAS2.50x1 ÷ 0.40
Break-even revenue at this spend$12,500$5,000 × 2.50
Profit after ads$3,000$20,000 × 0.40 = $8,000, minus $5,000
Margin after ads15%$3,000 ÷ $20,000
ROI on ad spend60%$3,000 ÷ $5,000
ACoS25%$5,000 ÷ $20,000
Target ROAS, 10% profit goal3.33x1 ÷ (0.40 - 0.10)

The 4.00x sits above the 2.50x break-even and above the 3.33x target, so this store clears a 10% goal.

Example: a service business buying leads

The business spends $3,600 on ads and gets 72 leads. One in four leads becomes a customer, each customer brings $900, and the margin is 35%.

MeasureResultWorking
Customers1872 × 0.25
Revenue$16,20018 × $900
ROAS4.50x$16,200 ÷ $3,600
Cost per lead$50.00$3,600 ÷ 72
Cost per customer$200.00$3,600 ÷ 18
Break-even ROAS2.86x1 ÷ 0.35
Profit after ads$2,070$16,200 × 0.35 = $5,670, minus $3,600
Most you can pay per customer$315.00$900 × 0.35
Close rate needed to break even15.9%$3,600 ÷ (72 × $900 × 0.35)

The last row is the useful one. If fewer than about 16 in 100 leads become customers, these ads lose money at this margin. This counts first-sale revenue only. Raise the revenue per customer to include repeat business.

Want the lead cost on its own? Use the cost per lead calculator. If your leads and won deals sit in GoHighLevel, GoHighLevel reporting shows how that data reaches a client report.

What ROAS leaves out

  • Overhead and fixed costs. Break-even here is before them.
  • Repeat purchases and lifetime value. The calculator reads the first sale unless you raise the revenue per customer.
  • Returns. Enter the refund rate under More costs and goals, or break-even comes out too low.
  • Attribution. Ad platforms credit sales by their own settings, so their ROAS and your sales records can differ.
  • Slow sales. A lead can close weeks after the spend. Use the same dates for spend and revenue, over a period long enough for sales to land.

ROAS vs ROI, ACoS, CPA and MER

MeasureWhat it tells youFormulaUse it when
ROASRevenue per ad dollarRevenue ÷ ad spendComparing ads with your break-even
ROI on ad spendProfit per ad dollarProfit after ads ÷ ad spendAsking whether ads beat other uses of money
ACoSShare of revenue spent on adsAd spend ÷ revenueA report gives you this instead of ROAS
CPACost of one order or customerAd spend ÷ ordersChecking against the most you can pay per order
MERTotal revenue per total ad dollarTotal revenue ÷ total ad spendYou want a blended view across channels

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ROAS calculator questions

What is a good ROAS?

One that clears your own break-even ROAS with room left for profit. Break-even is 1 divided by your margin: a 40% margin breaks even at 2.50x, a 25% margin at 4.00x. No single number suits every business. The table above shows the range by margin.

How do I calculate ROAS?

Divide the revenue your ads are credited with by the ad spend for the same dates. $20,000 of revenue on $5,000 of spend is 4.00, written 4.00x or 400%. That is revenue per ad dollar, not profit, so read it against your break-even.

What is break-even ROAS and how do I calculate it?

It is the ROAS at which ad profit is exactly zero. Divide 1 by your margin: 1 ÷ 0.40 = 2.50x. With refunds and fees, use (1 + fee rate) ÷ ((1 - refund rate) × margin). The calculator does this under More costs and goals.

Is a 2.5 ROAS good?

Only if your margin is above 40%. At 40%, 2.5x is exactly break-even before overhead. At 50% it leaves a profit after ads. At 30%, where break-even is 3.33x, it loses money. Check your margin before judging the number, and add any refunds and fees, which raise break-even.

What does a 4:1 ROAS mean?

Four dollars of revenue for every ad dollar, which is 400%, or an ACoS of 25%. Whether that pays depends on margin. At a 25% margin it is exactly break-even. At 40% it leaves 60 cents of profit per ad dollar, before overhead.

What does a 1.5 ROAS mean?

It means $1.50 of revenue per $1 of spend, or 150%. To break even you need a margin of about 66.7%, since 1 ÷ 1.5 = 0.667. Below that margin, the ads lose money before overhead. At a 50% margin, for example, break-even is 2.00x, so a 1.50x ROAS falls short.

What is the difference between ROAS and ROI?

ROAS compares revenue with ad spend. ROI compares profit with cost. In the store example, ROAS is 4.00x but ROI on ad spend is 60%, because ROI counts product costs. The calculator shows both, so a strong-looking ROAS does not hide a thin return.

What is the difference between ROAS and ACoS?

ACoS is ad spend divided by revenue, the inverse of ROAS. A 4.00x ROAS is a 25% ACoS, and 2.50x is 40%. A higher ROAS and a lower ACoS both mean more revenue per ad dollar. Neither shows profit until you compare it with break-even.

Why is the ROAS in my ad account different from this calculator?

Ad platforms such as Meta Ads and Google Ads credit sales using their own attribution settings, which can differ from your sales records. Returns, the dates you pick and whether you use platform revenue or store revenue also change the number. Match the dates and the revenue source first.

Which revenue should I enter?

Enter the revenue or conversion value your ads are credited with, for the same dates as the spend. Total revenue divided by total ad spend across all channels is a different measure, often called MER or blended ROAS. Label it that way and do not compare the two directly.

Does this work for lead generation and service businesses?

Yes. Switch to Leads and services. Enter ad spend, leads, the share of leads that become customers and revenue per customer. Add your margin to see break-even ROAS, the most you can pay per customer and the close rate you need to break even.

Does the calculator store or send my numbers?

No. The calculation runs in your browser, and nothing you enter is saved or sent. If you copy a link to share a result, it keeps your numbers and the mode you chose after the # sign, which browsers do not send to a server. Nothing else goes into the link.