ROAS Calculator
Work out return on ad spend, then see your own break-even ROAS line instead of a generic benchmark.
Your numbers
Attributed revenue for the same period, excluding tax and shipping charged.
Price minus product cost, shipping and payment fees, as a % of revenue. Used only for the break-even line.
Your result · updates as you type
ROAS (return on ad spend)
4.00x
Every $1 of ad spend brought back $4.00 of revenue. At a 45% margin that's $3,200 of profit after the ads themselves.
- Break-even ROAS
- 2.22x
- Profit after ad spend
- $3,200
- Buffer above break-even
- 1.78x
Comfortably above break-even. Compare ROAS across campaigns rather than against a single external number: your break-even line is the benchmark that actually applies to your margin.
Breakdown
- Revenue from these ads
- $16,000
- Ad spend
- −$4,000.00
- Gross profit at your margin
- $7,200
- Profit after ad spend
- $3,200
ROAS, and the break-even line that actually matters
ROAS is just revenue divided by ad spend. On its own it doesn't say whether a campaign makes money, because that depends on your margin. This calculator adds your gross margin so you get a break-even ROAS to judge against, instead of a number pulled from somewhere else.
Example: the default numbers
- Ad spend
- $4,000
- Revenue from those ads
- $16,000
- Gross margin
- 45%
ROAS is 16,000 ÷ 4,000 = 4.00x. Break-even ROAS is 1 ÷ 0.45 = 2.22x. Profit after ad spend is 16,000 × 0.45 − 4,000 = $3,200.
Why your own break-even beats an outside benchmark
A “good” ROAS quoted online usually comes from a different margin, category and order value than yours. A 4x ROAS is excellent at a 20% margin and barely break-even at a 60% one. Your break-even ROAS, built from your own numbers, is the benchmark that actually applies.
- Below break-even: every extra dollar of ad spend loses money, whatever the revenue chart shows.
- Just above break-even: profitable, but a small rise in CPMs or a wave of returns can flip it.
- Well above break-even: room to test more spend or a broader audience.
Using ROAS day to day
Compare ROAS across campaigns and time periods to spot what's changing, and use the break-even ROAS calculator to build the figure up from order value, cost and fees instead of a flat margin. If you're managing several channels at once, the MER calculator looks at total marketing against total revenue rather than one campaign at a time.
Questions people ask
What is a good ROAS?
It depends entirely on your margin. This calculator gives you your own break-even ROAS from your margin, which is a more useful target than any single number quoted for “ecommerce” in general.
How do you calculate ROAS?
Divide revenue from the ads by what you spent on them. $16,000 of revenue from $4,000 of spend is a 4.00x ROAS.
Is ROAS the same as profit?
No. ROAS ignores product cost, shipping and fees. A 4x ROAS on a 20% margin can lose money, while a 2x ROAS on a 60% margin can be very profitable.
Should I use ROAS or POAS?
ROAS is easier to read at a glance. POAS (profit on ad spend) answers the real question directly: are the ads paying for themselves after costs.
Related tools
Want this builtinto your store?
I'm Emmanuel, a Shopify and WooCommerce developer. If this tool pointed at something you'd rather have fixed for you (a faster store, cleaner product data, a migration, a custom feature), send me a note.
Emmanuel Asika
Shopify & WooCommerce developer, Dublin
I build and fix online stores: new builds, migrations, speed, SEO and the custom bits apps can't do.
Last reviewed 30 September 2026.