Performance Marketing Tool

Advanced ROAS & ROI Calculator

Calculate your Return on Ad Spend, find your Break-Even point, and discover your true ROI. Stop guessing, start scaling your profit.

Total amount spent on advertisements.

$

Total sales revenue generated by these ads.

$

Enter your product's profit margin to calculate net profit and ROI. Clear it if you only want to see ROAS.

%

YOUR ROAS

400%

You generate $4.00 for every $1 spent.

RETURN ON INVESTMENT (ROI)

+20%

Your net profit ratio compared to ad spend.

Break-Even ROAS

333%

The minimum ROAS needed to not lose money based on a 50% profit margin.

Net Profit

+$200

Money left in your pocket after deducting ad spend and product costs.

Mastering ROAS and ROI Metrics

In the world of digital marketing, it's not enough to just make sales; you need to make profitable sales. Return on Ad Spend (ROAS) is the North Star metric for media planners, showing exactly how much gross revenue is generated for every dollar spent on an ad campaign.

However, a high ROAS doesn't always guarantee a profitable campaign. If you are selling physical products with high manufacturing costs (like e-commerce), even a 300% ROAS could cause you to lose money. That is why professional media planners rely on ROI (Return on Investment) and Break-Even ROAS calculations to set accurate campaign targets.

How is ROAS Calculated?

ROAS = (Ad Revenue / Ad Spend) × 100

If you spend $1,000 on Google or Meta Ads and generate $5,000 in sales, your ROAS is 500% (or 5x). You earned $5 for every $1 spent.

How is ROI Calculated?

ROI = (Net Profit / Ad Spend) × 100

ROI tells you how much your net wealth actually grew. If you spent $1,000 on ads and put $1,000 of net profit (after product costs) into your pocket, your ROI is 100%.

Frequently Asked Questions

What is a good ROAS?

A "good" ROAS is relative. While 150% ROAS is profitable for SaaS companies with 90% profit margins, a 500% ROAS is absolutely necessary for e-commerce brands with 20% profit margins just to break even.

Why is my Profit negative despite high ROAS?

This happens when your Profit Margin is very low compared to your ad costs. If your margin is 10%, you need a massive 1000% ROAS just to break even. Even if you hit 800% ROAS, your revenue looks high, but you lose money overall.