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ROAS calculator: work out ROAS, break-even ROAS, revenue or spend

To calculate ROAS, divide the revenue (conversion value) from ads by the ad spend: 7,500 of value from 2,500 of spend is a ROAS of 3×, or 300%. The calculator also gives your break-even ROAS (1 ÷ profit margin: 2.5× at a 40% margin), the revenue a target ROAS needs at a given spend, and the most you can spend for an expected revenue at a target ROAS. ROAS measures reported value against media cost only, so it is not profit.

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Calculate ROAS, break-even ROAS, revenue or spend.

Choose what to solve for, then enter the other numbers. The starting values are illustrative. Nothing you enter is sent to Adlane.

Solve for

Return on ad spend

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Enter your values, then calculate.

ROAS = conversion value ÷ ad spend

Reported conversion value per unit of ad spend. ROAS is not profit: break-even ROAS shows the level needed to cover product costs at your margin.

ROAS formula

ROAS = conversion value ÷ ad spendROAS % = conversion value ÷ ad spend × 100Value needed = target ROAS × ad spendSpend = conversion value ÷ target ROASBreak-even ROAS = 1 ÷ profit margin

How to use the ROAS calculator

  1. Choose what to solve for: ROAS, revenue needed, spend or break-even ROAS.
  2. Enter value and spend for the same account scope, period and currency. Check whether “value” is order revenue or an estimated lead value, and do not add attributed value from Google and Meta together.
  3. Press Calculate. ROAS shows as a multiple and a percentage. For break-even ROAS, enter your profit margin before ad costs (price minus product, shipping and fees, as a % of price).

Reported return on ad spend: a worked example

Illustrative example: a store records 7,500 in attributed conversion value from 2,500 in spend, a ROAS of 3× (300%). Its products carry a 40% margin before ad costs, so break-even ROAS is 1 ÷ 0.40 = 2.5×. At 3× the ads cover product costs with something left; at 2× they would lose money on each sale even though revenue is double the spend.

ROAS examples for each calculation

All numbers are illustrative, not benchmarks.

QuestionYou knowWorkingAnswer
What is my ROAS?Value 7,500, spend 2,5007,500 ÷ 2,5003× (300%)
What is my break-even ROAS?Profit margin 40%1 ÷ 0.402.5× (250%)
What revenue does a 4× target need on 2,000 spend?Target 4×, spend 2,0004 × 2,000Value 8,000
How much can I spend at 4× for 10,000 of sales?Value 10,000, target 4×10,000 ÷ 4Spend 2,500
What is ROAS with no spend?Value 300, spend 0Division by zeroUnavailable

Break-even ROAS by profit margin

Break-even ROAS is the ROAS at which ad spend equals the gross profit the sales bring in. Below it, each attributed sale loses money after ad costs; above it, there is profit left to cover overheads. Use your margin after product, shipping, payment fees and refunds, before advertising.

Profit margin before ad costsBreak-even ROASAs a percentage
20%5.0×500%
25%4.0×400%
40%2.5×250%
50%2.0×200%
75%1.33×133%

Where to find ROAS in Google Ads and Meta

Google Ads: add Conv. value, Cost and Conv. value / cost from Columns; Conv. value / cost is ROAS as a multiple. Target ROAS bidding takes the same ratio as a percentage, so 400% means 4×. In the Google Ads API, metrics.conversions_value_per_cost returns it directly.

Meta Ads Manager: add Purchase ROAS (return on ad spend) beside Amount spent and Purchases conversion value. In the Marketing API the fields are purchase_roas and website_purchase_roas. Each platform credits sales under its own attribution setting, and both can credit the same order.

ROAS is not ROI

ROAS divides revenue by ad spend; ROI divides profit by total cost. A 3× ROAS on a 25% margin product loses money, because the break-even ROAS is 4×. With a margin m, ROI on ad spend alone is ROAS × m − 1.

When the ROAS ratio is undefined

Zero spend makes ROAS undefined, a target ROAS of zero cannot give a spend figure, and break-even ROAS needs a margin above 0%. Refunds, fulfilment costs and overlapping platform credit can change the business interpretation.

Read the definition before comparing campaigns

ROAS meaning and formula: how to calculate return on ad spend explains what this number does and does not tell you, with the same caveats this calculator applies.

Questions, answered

How do you calculate ROAS?

Divide the conversion value (revenue) attributed to ads by the ad spend for the same period and scope. 7,500 ÷ 2,500 = a ROAS of 3×, or 300%.

What is the ROAS formula?

ROAS = conversion value ÷ ad spend. Multiply by 100 to show it as a percentage.

How do I calculate break-even ROAS?

Divide 1 by your profit margin before ad costs, as a decimal. At a 40% margin, break-even ROAS is 1 ÷ 0.40 = 2.5×.

What is a good ROAS?

Any ROAS comfortably above your break-even ROAS. A 4× ROAS can lose money at a 20% margin and be very profitable at 60%, so there is no universal good number.

Is ROAS a percentage or a multiple?

Both describe the same ratio: 3× and 300% are equal. Google Ads target ROAS uses a percentage; the Conv. value / cost column shows a multiple.

Why is my ROAS unavailable?

With zero spend the ratio is undefined. Zero value with positive spend is a defined ROAS of 0×.

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