ROAS (return on ad spend) is the revenue generated for every dollar of advertising spend.
What is the ROAS (Return on Ad Spend) Calculator?
This free ROAS calculator shows your return on ad spend alongside the break-even ROAS you actually need and your profit after ad spend. It corrects the common mistake of celebrating a high ROAS that still loses money once margin is taken into account.
How this calculator works
Enter your ad spend, the revenue those ads generated, and your gross margin. The tool divides revenue by spend for ROAS, inverts your margin to find break-even ROAS, and subtracts spend from gross profit to show whether the campaign is actually profitable.
How to read your result
The headline is your ROAS. The rows show your break-even ROAS, profit after ad spend, and ACoS. If your ROAS is below break-even, the campaign loses money even though revenue looks positive; focus on conversion, AOV, or targeting before scaling.
Work with a Shopify expert
If your ads convert poorly, landing-page and CRO work lifts ROAS without raising budget. Talk to a growth expert.
This free return on ad spend calculator gives a fast, data-informed estimate; for wider industry context on return on ad spend, see the Google Ads Help Center.
ROAS = revenue from ads / ad spendFactors
Ad spend
Total media cost for the campaign or period you are measuring.
Revenue from ads
Attributed revenue those ads produced, ideally net of returns.
Gross margin
Sets your break-even ROAS - low-margin products need a higher ROAS to profit.
Attribution window
Longer windows credit more revenue and raise reported ROAS.
- Free and instant - no sign-up required.
- Built for Shopify and ecommerce stores.
- Use real numbers to plan with confidence.
- Turn the result into action with CartCoders.
Related calculators
Planning a project usually means weighing more than one number. These tools cover the decisions next to this one:
- CAC & Payback Calculator — cost per customer
- Profit Margin Calculator — margin per order
- Email & SMS ROI Calculator — owned-channel ROI
Frequently asked questions
How is ROAS calculated?
Divide the revenue generated by a campaign by the amount you spent on it. A 20,000 dollar return on 5,000 dollars spend is a 4.0x ROAS. This calculator also shows your break-even ROAS and profit.
What is a good ROAS?
It depends entirely on your margin. Break-even ROAS is the inverse of your gross margin, so a 40 percent margin needs a 2.5x ROAS just to break even. Aim comfortably above that.
Why can a high ROAS still lose money?
Because ROAS ignores product and fulfillment costs. A 3x ROAS on a thin-margin product can still be unprofitable once COGS, shipping, and fees are included, which is why this tool shows profit after ad spend.