Free tool · Google & Meta ads
ROAS & break-even
ROAS calculator.
Are your ads actually profitable? Find out in ten seconds. Free, no sign-up.
Run the numbers.
Work out your return on ad spend, the break-even ROAS your margins demand, and what your Google, Facebook or Instagram ads really made you once product costs are paid.
For every $1 you spend on ads, you get $4.00 back in revenue.
PROFITABLE: You are 1.6x your break-even ROAS of 2.5x, so your ads are making money after product costs.
Get a free ads review →What is a good ROAS?
There isn't one magic number. A good ROAS is any ROAS above your break-even ROAS, which is 1 divided by your profit margin. At a 40% margin you break even at 2.5x, so a 4x ROAS is profitable. At a 20% margin you need 5x just to break even. As a percentage, a 4x ROAS is 400%.
The ROAS formula.
How to calculate ROAS, break-even ROAS and profit after ad spend. No black box.
01
ROAS
revenue ÷ ad spend$12,000 in sales from $3,000 in ads is a 4x ROAS: every $1 in ads brought back $4 in revenue.
02
Break-even ROAS
1 ÷ profit marginThe ROAS where ads exactly pay for themselves. Below it, every sale from ads loses you money.
03
Profit after ads
revenue × margin − ad spendWhat the campaign actually left in your pocket once product costs and the ad bill are paid.
Real results.
From a client in a niche Google and Meta restrict.
5x ROAS
A wellness & microdosing brand
Started at $30 a day and turned $10,508 in ad spend into $52,799 in revenue, in a niche Google and Meta restrict.
Read the case study →PPC
Google and Meta ads. Managed, optimised, results-driven. Setup, conversion tracking, budget allocation, ongoing testing and a monthly report.
$999/mo
Ad spend billed by the platforms.
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Good questions.
The things people ask us most about ROAS.
What is ROAS?
ROAS stands for return on ad spend. It's the revenue your ads generate divided by what you spent on them. A ROAS of 4x (or 400%) means every $1 in ads brought in $4 in sales.
What is the ROAS formula?
ROAS = revenue from ads ÷ ad spend. If $3,000 of ads brings in $12,000 in sales, your ROAS is 12,000 ÷ 3,000 = 4, written as 4x or 400%. To see whether that is profitable, compare it with your break-even ROAS: 1 ÷ your gross profit margin.
How do I calculate my break-even ROAS?
The break-even ROAS formula is 1 divided by your gross profit margin as a decimal. With a 40% margin, 1 ÷ 0.40 = 2.5, so you need a 2.5x ROAS for your ads to pay for themselves. Anything above that is profit.
What is a good ROAS for Google Ads or Facebook ads?
The same rule applies on every platform: a good ROAS is one above your break-even ROAS. Google Search often returns more per dollar because people are already searching, while Meta ads find new buyers and can need a little longer to pay back. Compare each platform against your own break-even number, not someone else's average.
What's the difference between ROAS and ROI?
ROAS only compares revenue with ad spend. ROI looks at profit, so it also counts product costs, agency fees and other expenses. A campaign can have a healthy-looking ROAS and still lose money if your margins are thin.
Should I include agency or software fees?
For the truest picture, yes. Add management fees and tools to your ad spend before you calculate, and you'll see the ROAS you actually need from your campaigns.
How can I improve my ROAS?
The usual wins are better conversion tracking, cutting search terms and audiences that never convert, stronger ad creative, and landing pages that match the ad. Book a free call and we'll tell you which of these matters most for your account.
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