ROAS Calculator
Find out how much revenue every dollar of ad spend brings back. Add your product cost to also see profit on ad spend (POAS) and net profit. Updates live as you type.
Inputs
Enter the totals for any campaign, channel or time window.
Total sales attributed to the ad spend below.
Add this to also see profit-on-ad-spend (POAS) and net profit.
Return on Ad Spend (ROAS)
Excellent. Every $1 spent on ads brings back $4 in revenue. Scale this campaign aggressively while it lasts.
- Gross profit (revenue − ad spend)
- $7,500.00
- Ad spend as % of revenue
- 25%
How it's calculated
ROAS is one of the simplest and most powerful advertising metrics. The formula is:
ROAS = Revenue from ads ÷ Ad spend
A ROAS of 3x means you earned $3 of revenue for every $1 you spent on ads. A ROAS of 1x means you broke even on revenue (but probably lost money once you account for product cost and fees).
POAS (Profit on Ad Spend) goes one step deeper by replacing revenue with gross profit:
POAS = (Revenue − Product cost) ÷ Ad spend
POAS gives you a true picture of campaign profitability and is the metric most experienced ecommerce operators optimise toward.
Definitions
Frequently asked questions
What is ROAS?+
ROAS stands for Return on Ad Spend. It's revenue divided by ad spend, expressed as a multiple (for example 3x means $3 of revenue for every $1 spent on ads). It's the most-used efficiency metric in paid advertising.
What is a good ROAS?+
It depends on your gross margin. A common ecommerce rule of thumb is 3–4x ROAS to be comfortably profitable. High-margin digital products can profit at 1.5–2x. Low-margin commodity goods may need 5x or more. Always compare ROAS to your break-even ROAS, not an arbitrary benchmark.
What's the difference between ROAS and POAS?+
ROAS uses revenue, while POAS (Profit on Ad Spend) uses gross profit (revenue minus product cost). POAS is more accurate because it accounts for the fact that low-margin products need a much higher ROAS to be profitable. Use the optional product-cost field above to see both.
How is ROAS different from ROI?+
ROAS only considers ad spend and the revenue that ad spend produced. ROI factors in all costs (product, shipping, fees, fixed costs) against total profit. ROAS is faster to calculate per-campaign; ROI is the bottom-line truth.
Why does my Facebook or TikTok ads dashboard show a different ROAS?+
Ad platforms attribute revenue using their own attribution windows (often 7-day click) and tracking pixels. Your true ROAS — based on actual orders in your store — is usually 10–30% lower. Use this calculator with real revenue numbers from your store, not platform-reported revenue.
Is this calculator free?+
Yes. No signup, no email gate, no caps. The calculation runs in your browser — your numbers never leave your device.
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