SEO & Marketing
ROAS Calculator
Calculate return on ad spend, contribution after advertising, and break-even ROAS.
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Transparent methodology
What the result includes—and what it does not
Built for advertisers and ecommerce owners checking whether a campaign's attributed revenue still covers its ad spend once gross margin is applied.
Calculation method
- 1ROAS = revenue attributed to advertising ÷ advertising spend, shown as a multiple: 3× means $3 of attributed revenue for every $1 spent.
- 2Gross profit from attributed revenue = attributed revenue × the entered gross margin percentage.
- 3Contribution after ad spend = that gross profit − advertising spend. Nothing else is subtracted.
- 4Break-even ROAS = 1 ÷ gross margin as a decimal, and the ROAS result is flagged as a warning whenever it falls below that figure.
Assumptions and limits
- Attributed revenue and ad spend must cover the same date range, currency, account scope and attribution window. The calculator does not connect to an ad account, and the currency selector changes formatting only — it does not convert amounts.
- Gross margin should cover only the cost of delivering the product or service. Overhead, salaries, tax, refunds, shipping subsidies, platform fees and agency or management fees are not deducted anywhere in this calculation.
- Attributed revenue is not proof of causation. The revenue a platform credits to a campaign includes sales that would have happened without the ad, and this tool cannot measure incrementality.
- Break-even ROAS assumes one blended gross margin. A mixed basket, tiered pricing or volume-dependent costs will move the real break-even point away from 1 ÷ margin.
Worked example
$15,000 attributed revenue from $5,000 ad spend
Input: $5,000 ad spend, $15,000 revenue attributed to ads, 60% gross margin, USD.
Output: 3× ROAS, $9,000.00 gross profit from attributed revenue, $4,000.00 contribution after ad spend, and a 1.67× break-even ROAS.
Primary sources
- Google Ads — About Target ROAS biddingOfficial formula and Google's percentage convention: sales ÷ ad spend × 100%, so 3× is reported there as 300%.
- Google Ads — About conversion lag reportingOfficial explanation of how reporting delay can make a recent period's ROAS look lower than it will eventually settle at.
How to use it
Three steps. One clear answer.
- 1Enter or paste the values requested by the tool.
- 2Review the input units and choose any relevant options.
- 3Calculate, then copy or download the result you need.
Built for trust
Useful without the friction.
- No registration or paywall before your result.
- Responsive controls for phone, tablet, and desktop.
- Clear assumptions and warnings where estimates have limits.
Frequently asked questions
How do you calculate ROAS?
Divide the revenue attributed to advertising by the advertising spend for the same period. $15,000 of attributed revenue on $5,000 of spend is 3× ROAS — $3 of revenue for every $1 spent.
Is ROAS a percentage or a multiple?
Both conventions describe the same ratio. This calculator returns a multiple, so it shows 3×, while Google Ads expresses the same figure as a 300% target ROAS. Multiply the multiple by 100 to convert.
What is a good ROAS?
There is no universal benchmark, because the point at which a campaign breaks even depends entirely on your gross margin. Compare your ROAS with the break-even ROAS this tool returns: a 60% margin needs 1.67×, a 30% margin needs 3.33×.
Can a campaign have a high ROAS and still lose money?
Yes. $5,000 of spend returning $15,000 is 3× ROAS, but at a 30% gross margin that revenue carries only $4,500 of gross profit, so contribution after ad spend is −$500. ROAS alone says nothing about the cost of delivering the revenue.
What is the difference between ROAS and ROI?
ROAS isolates one thing ROI does not: gross revenue returned per unit of advertising spend, before the cost of producing that revenue. ROI compares net gain against total cost, so the cost of goods is already netted out of it. Cost per conversion is different again — it measures what a conversion cost and ignores revenue entirely.
Which revenue figure should I enter?
Use the revenue your ad platform or analytics credits to the same campaigns whose spend you are entering, over the same dates and attribution window. Subtract refunds and cancellations yourself — the calculator uses the number you type and does not read from any ad account.
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