Free RevOps Tool
ROAS Calculator (with Break-Even and Target ROAS)
A 4x ROAS can lose money and a 2x can print it: the difference is your gross margin. This calculator gives you the three numbers that matter, in one pass: actual ROAS, the break-even line your margin sets, and the target that hits your profit goal.
Run Your Ad Economics
Results update as you type. Everything runs in your browser and nothing you enter is stored or sent anywhere.
1. Your numbers
Enter an ad spend above zero to run the math.
Revenue minus cost of goods sold, divided by revenue. Percent.
Advanced: target profit on ad spend
The profit you want per $1 of ad spend, after margin. 20% means every ad dollar should return $0.20 of profit.
Your ROAS
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Enter your numbers to see the verdict.
- ROAS
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- Profit from ads (monthly)
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- Break-even ROAS
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- Target ROAS
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- Profit per $1 of spend
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Return on ad spend is revenue divided by spend, and on its own it tells you almost nothing, because it ignores what the revenue costs you to deliver. This calculator adds the two numbers that turn ROAS into a decision. First, break-even ROAS: divide 1 by your gross margin and you get the return where ads stop losing money. At a 50% margin that is 2.00x; at a 25% margin it is 4.00x, which is why a “good” 4:1 ROAS can still be a break-even campaign.
Second, target ROAS: decide how much profit you want per dollar of spend, add 1, and divide by margin. The verdict band compares your actual ROAS against both lines and says, in plain terms, whether these ads lose money, barely clear the bar, or genuinely compound. Profit per $1 of spend is the same math from the other direction: ROAS times margin, minus the dollar you spent.
The formula
| What | The math |
|---|---|
| ROAS | revenue ÷ ad spend |
| Profit from ads | (revenue × gross margin) − ad spend |
| Break-even ROAS | 1 ÷ gross margin |
| Target ROAS | (1 + target profit rate) ÷ gross margin |
| Profit per $1 of spend | (ROAS × gross margin) − 1 |
Keep the Math Going
The rest of the free RevOps toolkit, and the team that runs this math for clients.
The same funnel numbers, run backwards from a revenue goal.
Model what the compounding channel returns over 12 months.
The senior team that runs this math on live ad accounts.
Frequently Asked Questions
What is ROAS and how is it calculated?
ROAS is return on ad spend: revenue attributed to your ads divided by what the ads cost. $15,000 of revenue on $5,000 of spend is a 3.0x ROAS, also written 3:1. It measures revenue efficiency, not profit, which is why this calculator pairs it with break-even ROAS.
What is break-even ROAS?
Break-even ROAS is the return where ads stop losing money, and it comes straight from gross margin: divide 1 by your margin. A 40% margin needs 2.50x to break even; a 25% margin needs 4.00x. Anything below that line loses money regardless of how healthy the ROAS looks on its own.
Is a 4:1 ROAS good?
It depends entirely on your gross margin. At a 50% margin, 4:1 returns $1 of profit per ad dollar. At a 25% margin, 4:1 is exactly break-even, and at 20% it loses money. Run your own margin through the break-even formula before judging any ROAS number.
What is the difference between ROAS and ROI?
ROAS compares revenue to ad spend and ignores your cost of delivering the product. ROI compares profit to total cost. An easy bridge: profit per $1 of spend equals ROAS times gross margin, minus 1, which is effectively your ad ROI per dollar.
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