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Business & Accounting

Return on Ad Spend (ROAS) Calculator

Calculate ROAS from ad revenue and spend, and the break-even ROAS for your gross margin.

Your inputs

Results

ROAS

4 ×

ROAS as a percentage
400%
Break-even ROAS at this margin
2.5 ×

✓Exact calculation — rounded only for display

What this calculator does

ROAS measures revenue generated per unit of ad spend. Because it ignores costs, compare it with the break-even ROAS for your margin.

Formula and method

ROAS = revenue ÷ ad spend; Break-even ROAS = 1 ÷ gross margin

Worked example

Calculated by this tool with its default inputs:

Inputs

  • Revenue attributed to ads: 20000 (any currency)
  • Ad spend: 5000 (any currency)
  • Gross margin (for break-even ROAS): 40 %

Results

  • ROAS: 4 ×
  • ROAS as a percentage: 400%
  • Break-even ROAS at this margin: 2.5 ×

How to read the results

With a 40 % margin you need at least 2.5× ROAS just to cover the cost of the goods and the ads.

Assumptions and limitations

  • Attribution models strongly affect reported ad revenue.

Financial results are estimates based on the inputs and assumptions shown. They are not financial advice; confirm figures with your lender, provider or a qualified adviser before making decisions.

Questions

ROAS vs ROI?

ROAS uses revenue; ROI uses profit. The Advertising ROI calculator shows the profit view.

Methodology and verification

Result type
Exact mathematical calculation (rounded only for display)
Formula version
1.0
Automated verification
2 reference and validation test cases, checked against independently computed values. The site cannot be built if any of them fail.
Editorial review
Awaiting human editorial review. The explanation was drafted with AI assistance; the formula and examples are verified by the automated tests above.

Privacy

Everything you enter is calculated in this browser and is not sent to Numerith or anyone else. Inputs are added to a share link only if you choose to include them. Privacy policy