Use this free ROAS calculator to work out your return on ad spend, your break-even ROAS and what your ads actually leave you after costs.
By Annabelle Cochrane, Managing Director & SEO Specialist at ALC Consulting. Last reviewed November 2026.
Use the same time period for your spend and revenue.
This uses the ad spend you entered above.
How many sales do you need each month to cover your fixed costs?
ROAS stands for return on ad spend. It tells you how much revenue comes back for every dollar you put into ads. A ROAS of 4x means $4 in revenue for every $1 spent.
I wouldn't trust any single benchmark, because it depends on your margin. A business on a 60% margin and one on a 20% margin can have the same ROAS and very different results. Start with your break-even number, then decide what return you need above it.
At a 40% margin, that's 1 ÷ 0.4, or 2.5x. Below that, your ads are losing money before you've paid for anything else, such as management fees or overheads.
ROAS only compares revenue with ad spend. ROI looks at profit after costs. Check both, because revenue on its own can hide a campaign that isn't making money.
ROAS stands for return on ad spend. It shows how much revenue you get back for every dollar you spend on ads.
Divide your revenue from ads by your ad spend. For example, $8,000 in revenue from $2,000 in ad spend is a ROAS of 4x, or 400%.
There is no single number. A good ROAS is one above your break-even point, and that depends on your margin. At a 40% margin you break even at 2.5x, while at a 20% margin you break even at 5x.
ROAS compares revenue with ad spend. ROI looks at profit after your costs, so a campaign can have a healthy-looking ROAS and still lose money.
Divide 1 by your gross margin as a decimal. At a 40% margin, 1 ÷ 0.4 gives you a break-even ROAS of 2.5x.
CPC is your ad spend divided by clicks. CPM is your ad spend divided by impressions, multiplied by 1,000.
