ROAS Calculator: Are Your Ads Making Money?
Enter your ad spend, the revenue from those ads and your gross margin. The calculator shows ROAS, ACOS, the profit after ads and the break-even ROAS you need to reach.
Estimates only. Check important results before you rely on them.
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From related categoriesHow to use this calculator
- Enter how much you spent on ads.
- Enter the revenue those ads brought in.
- Enter your gross margin before ad cost.
- Read ROAS, ACOS and the profit after ads.
The formula
Worked example
₹20,000 of ads that bring in ₹1,00,000 of revenue give a ROAS of 5x and an ACOS of 20%. At a 30% margin, gross profit is ₹30,000 and the profit after ads is ₹10,000. The break-even ROAS is 3.33x, so 5x is profitable.
Understanding your result
A high ROAS is not always profit. Compare it with your break-even ROAS: a 4x ROAS loses money on a 20% margin. The chart shows where the revenue goes.
When to use it
- Decide whether to scale a campaign.
- Set the ROAS target in your ad platform.
- Compare channels fairly.
Assumptions and limits
Uses revenue attributed by the ad platform. Returns, cancellations and repeat purchases are not included.
Frequently asked questions
What is ROAS?
Return on ad spend: the revenue you earn for each rupee spent on ads.
What is a good ROAS?
It depends on your margin. You need to be above your break-even ROAS, which is 1 divided by your margin.
What is ACOS?
Advertising cost of sale: ad spend as a percentage of ad revenue. It is the inverse of ROAS.
How do I find my break-even ROAS?
Divide 1 by your gross margin as a decimal. A 25% margin needs a 4x ROAS.
Does ROAS include all costs?
No. It only compares ad spend and revenue. Use the margin field to see profit.