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.
Enter campaign data
Please enter valid numbers. Ad spend must be greater than zero and gross margin must be between 0% and 100%.
Your results
$5,000 revenue ÷ $1,000 ad spend = 5.00×Result copied.
How to calculate ROAS
Return on ad spend measures how much attributed revenue a campaign generates for each unit of advertising cost.
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.
Attributed revenue divided by advertising spend.
1 divided by gross margin as a decimal. A 40% margin produces a 2.50× break-even ROAS.
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.