ROAS Calculator
Return on ad spend, break-even ROAS and the target you need for a profit.
Enter two values to start.
Add your gross margin to see break-even ROAS and profit.
Target ROAS for the profit you want
Enter your gross margin above, then a profit target.
Profit at each ROAS
| ROAS | Revenue | Profit after ads |
|---|
Compare campaigns
Margin % is optional: leave it empty to use the gross margin above.
Paste campaigns from a spreadsheet or ads export
With a header row, columns named Campaign, Cost or Spend, and Conv. value or Revenue are found automatically. Without one, use the order name, spend, revenue, margin.
| Campaign | Spend | Revenue | ROAS | ACoS | Profit after ads | vs break-even |
|---|
Results are estimates for general information and planning, not financial advice. Banks and institutions may calculate differently (rounding, fees, rate changes). Confirm figures with your lender or a qualified adviser before deciding.
About the ROAS Calculator
ROAS — return on ad spend — is the revenue your ads bring in for every rupee (or dollar) they cost: revenue ÷ ad spend. Type any two of ad spend, revenue and ROAS and the third is calculated, shown both as a ratio (4.5×) and as the percentage Google Ads uses (450%), together with ACoS, the spend-to-sales percentage Amazon Ads reports.
A ROAS on its own does not tell you whether the ads make money. Add your gross margin and the calculator shows the break-even ROAS, your profit after ad costs, the most you could spend and still break even, and the target ROAS for the profit you want. A table compares several campaigns against break-even and gives the blended ROAS of all of them.
How to use it
- Enter two of ad spend, revenue from ads and ROAS for the same period. ROAS can be typed as a ratio (4, 4.5x) or a percentage (450%).
- Add your gross margin: the share of revenue left after the cost of the product, shipping, payment fees and returns, before advertising.
- Read the ROAS, ACoS, break-even ROAS and profit after ads. The Profit at each ROAS table shows what other ROAS levels would earn for the same spend.
- Under Target ROAS, enter the profit you want — as a share of revenue or as an amount — to get the ROAS to aim for.
- Add campaigns (or paste them from an ads export) under Compare campaigns and download the comparison as CSV.
Examples
Ad spend ₹10,000 · revenue ₹45,000
ROAS 4.5× (450%) · ACoS 22.22%
Same campaign, gross margin 40%
Break-even ROAS 2.5× · profit after ads ₹45,000 × 0.40 − ₹10,000 = ₹8,000
Gross margin 40%, target 15% of revenue
Target ROAS = 1 ÷ (0.40 − 0.15) = 4× (400%)
Margin 40%, ad spend ₹10,000, profit wanted ₹20,000
Revenue (₹20,000 + ₹10,000) ÷ 0.40 = ₹75,000 → ROAS 7.5×
The formulas
- ROAS = revenue from ads ÷ ad spend. Google Ads writes it as a percentage: "$5 USD in sales ÷ $1 USD in ad spend x 100% = 500% target ROAS" (About Target ROAS bidding).
- ACoS = ad spend ÷ ad revenue × 100, the inverse of ROAS (Amazon Ads: ACOS). A ROAS of 4× is an ACoS of 25%.
- Profit after ads = revenue × gross margin − ad spend.
- Break-even ROAS = 1 ÷ gross margin: at a 40% margin each ₹1 of revenue leaves ₹0.40, so ₹2.50 of revenue is needed to pay for ₹1 of ads.
- Target ROAS for a profit margin p = 1 ÷ (gross margin − p), because revenue × margin − spend = p × revenue.
- Target ROAS for a profit amount P = (P + spend) ÷ (gross margin × spend).
Which margin to use
Use the margin on the sales the ads produce, after every cost that grows with each order: the product or service cost, packaging and shipping, payment-gateway and marketplace fees, and an allowance for returns and refunds. Leave out fixed costs such as rent and salaries — cover those with the break-even calculator. If you know the price and cost, the margin calculator gives the margin. For GST-registered sellers, use prices and costs excluding GST.
Margins and break-even analysis in general are covered in marketing references such as Farris, Bendle, Pfeifer & Reibstein, Marketing Metrics (3rd ed., Pearson FT Press).
Using the result in Google Ads
Google Ads' target ROAS bid strategy takes the goal as a percentage — a target of 4× is entered as 400%. Its help page suggests working it out from past results: show the "Conv. value / cost" column and "multiply conversion value per cost metric by 100 to get your Target ROAS percent". Start near what a campaign already achieves rather than at a much higher target, and compare against your break-even ROAS: a target below break-even buys sales at a loss.
Limitations
- ROAS depends on the revenue your ad platform attributes to the ads. Different attribution windows and models (and conversions the ads did not cause) can make the same campaign look better or worse.
- Profit after ads covers per-sale costs only; fixed overheads, agency fees and the lifetime value of a returning customer are not included.
- All figures are for the period and currency you enter; nothing is converted between currencies.
- A calculation aid, not financial advice: check decisions about budgets against your own accounts.
Privacy
Everything happens in your browser. What you enter or open here is not uploaded or stored by MySmartCoPilot.
Frequently asked questions
What is a good ROAS?
Any ROAS above your break-even ROAS makes money on the sales it brings in, so "good" depends on your margin: at a 50% margin anything above 2× is profitable, at a 20% margin you need more than 5×. Compare campaigns with your own break-even, not with a general rule of thumb.
Is ROAS the same as ROI?
No. ROAS divides revenue by ad spend only. ROI compares profit with the whole investment (ad spend plus the cost of the goods and other costs). A campaign can have a ROAS of 3× and still lose money when the margin is below 33%.
How do I convert between ROAS and ACoS?
ACoS = 100 ÷ ROAS (as a ratio). A 4× ROAS is a 25% ACoS; a 20% ACoS is a 5× ROAS. Your break-even ACoS equals your gross margin.
Why does the calculator say my target profit is impossible?
Because the profit you ask for is at least your whole gross margin. Ads always cost something, so the profit left after them is always less than the margin. Lower the target or improve the margin first.
Should I enter ROAS as 4 or 400%?
Either. Type 4, 4x or 4:1 for a ratio, or 400% for a percentage; the unit menu next to the field decides how a bare number is read.