ROAS Calculator
ROAS (return on ad spend) is revenue from ads divided by ad spend. A ROAS of 4 means every 1 spent on ads brought 4 in revenue.
What is ROAS?
ROAS measures how much revenue your advertising returns. It does not include product cost or fees, so a high ROAS is not automatically profitable — compare it with your break-even ROAS.
How to use the ROAS calculator (formula)
What each field means
- Revenue from ads — Revenue attributed to the ads.
- Ad spend — Total spend on those ads.
Worked example
Using these numbers: revenue from ads $12,000, ad spend $3,000.
The roas is 4.00x.
- ROAS as %: 400.0%
- Ad spend as % of revenue: 25.0%
What is a good ROAS?
For ecommerce, a ROAS of 3–4 is a common healthy target, but the right number depends on margin: high-margin products can profit at 2, low-margin products may need 5+.
Tips to improve your result
- Always compare ROAS with break-even ROAS.
- Use the same attribution window when comparing campaigns.
- Look at blended MER as well as platform ROAS.
- A falling ROAS while scaling is normal — watch profit, not just ROAS.
Frequently asked questions
What is the ROAS formula?
ROAS = revenue from ads ÷ ad spend.
Is ROAS the same as ROI?
No. ROI subtracts all costs; ROAS only compares revenue with ad spend.
Why is my ROAS high but profit low?
Product, shipping and fees are not in ROAS. Your ROAS may be below break-even.
What ROAS should I target on Meta ads?
Start from break-even ROAS and aim 30–50% above it.
You might also need
Break-even ROAS CalculatorThe minimum ROAS your margin allows.
E-commerce Profit CalculatorNet profit and margin per order after product, shipping, fees and ads.
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