Free tool
ROAS calculator
Enter revenue from ads, ad spend and your gross margin to see your return on ad spend, the ROAS you need to break even, and the target ROAS that leaves the profit you want. It updates as you type.
Conversion value in the period.
Same period as the revenue.
Revenue left after cost of goods.
Of revenue, after ad spend.
- Your ROAS
- 4.80x
- 480%, or £4.80 back for every £1 spent
- Break-even ROAS
- 2.50x
- Target ROAS
- 3.33x
- Gross profit after ad spend
- £4,600
- Above your target ROAS: room to scale.
Arithmetic on your inputs only. It leaves out returns, delivery, payment fees and staff time; include them in the margin if you know them.
Reading the three numbers
Your ROAS is revenue divided by spend. On its own it says nothing about profit.
Break-even ROAS is 1 divided by gross margin. If your ROAS is below it, advertising is losing money on every sale before any other cost is counted.
Target ROAS adds the profit you want to keep. It is the figure to give Google Ads if you use target ROAS bidding, ideally set separately for product groups with different margins.
For the reasoning behind these, and the ways a reported ROAS can mislead, see the guide what is ROAS and what is a good ROAS.
ROAS questions
How is ROAS calculated?
Revenue from ads divided by the ad spend that produced it, for the same period. £20,000 of revenue from £5,000 of spend is a ROAS of 4x, or 400%.
What is break-even ROAS?
1 divided by your gross margin. At a 40% margin, break-even ROAS is 2.5x: below that, each sale loses money once the cost of the goods is paid.
What target ROAS should I set in Google Ads?
1 divided by your gross margin minus the profit share you want to keep. At a 40% margin and 10% profit, that is 1 divided by 0.30, or about 3.33x.
Why does my ROAS look good but profit is low?
Usually because the margin is thin, because brand or remarketing campaigns are inflating the figure, or because returns and fees are not in the calculation.
Find out what your ROAS really is
The audit checks your conversion values against your own sales, separates brand and remarketing, and shows the ROAS your campaigns are actually earning.