ROAS Calculator

Free advertising calculator

Calculate return on ad spend from your advertising cost and attributed revenue. Add your gross margin to estimate break-even ROAS and campaign contribution profit.

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Enter campaign data

Live calculation
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Your results

Return on ad spend5.00×Above break-even
ROAS percentage500.00%
Revenue minus ad spend$4,000.00
Break-even ROAS2.50×
Contribution profit$1,000.00
Calculation$5,000 revenue ÷ $1,000 ad spend = 5.00×

How to calculate ROAS

Return on ad spend measures how much attributed revenue a campaign generates for each unit of advertising cost.

ROAS = Revenue from ads ÷ Advertising spend

If a campaign generates $5,000 from $1,000 in ad spend, its ROAS is 5.00×, or 500%. That means every $1 spent on advertising generated $5 in attributed revenue.

ROAS

Attributed revenue divided by advertising spend.

Break-even ROAS

1 divided by gross margin as a decimal. A 40% margin produces a 2.50× break-even ROAS.

Contribution profit

Revenue multiplied by gross margin, minus advertising spend.

Frequently asked questions

What does a 4.00× ROAS mean?

It means the campaign generated $4 in attributed revenue for every $1 spent on advertising.

What is a good ROAS?

A good ROAS depends on gross margin, operating costs, attribution quality, and business goals. It should be compared with your break-even ROAS, not judged by one universal target.

Is ROAS the same as ROI?

No. ROAS compares advertising revenue with advertising spend. ROI normally considers the broader investment and profit after additional costs.

Why does gross margin matter?

Revenue is not profit. Gross margin estimates how much attributed revenue remains before advertising costs, helping identify whether the campaign is above break-even.

Important: Results depend on the accuracy of your advertising attribution and margin inputs. This calculator is for planning and campaign analysis, not financial reporting.