ROAS Calculator: Is Your Ad Spend Paying Off?
Calculate return on ad spend, the break-even ROAS for your margin, and the target that leaves real profit. Everything runs in your browser, nothing is stored.
Use the tool, freeSpend
$23,500Revenue from ads
$64,270Blended ROAS
2.73x| Campaign | Cost | Conv. value | ROAS |
|---|---|---|---|
| Search, brand | $4,200 | $18,900 | 4.50x |
| Performance Max | $6,100 | $14,030 | 2.30x |
| Prospecting, video | $5,300 | $10,070 | 1.90x |
| Retargeting | $1,800 | $9,900 | 5.50x |
| Lead gen, CFOs | $3,900 | $7,410 | 1.90x |
| Spark ads | $2,200 | $3,960 | 1.80x |
Cost
$10,000Conv. value
$42,000Conv. value / cost
4.20x$4.20 back for every $1 spentProfit after ad spend
$6,800Where your ROAS sits
Break-even ROAS
2.50xTarget ROAS
3.33xROI on ad spend
68%Recommendation
What Is ROAS?
Return on ad spend, or ROAS, is the revenue your ads bring in divided by what you spent on them. A ROAS of 4 means every dollar of ad spend returned four dollars of revenue.
ROAS = revenue from ads / ad spend
It is the quickest way to compare campaigns, but on its own it says nothing about profit. A 4x ROAS on a product with a 20% margin still loses money.
How To Calculate Break-Even ROAS
Break-even ROAS is the point where ad revenue covers both the ad spend and the cost of what you sold. It depends only on your gross margin.
Break-even ROAS = 1 / gross margin
| Gross margin | Break-even ROAS |
|---|---|
| 20% | 5.00x |
| 30% | 3.33x |
| 40% | 2.50x |
| 60% | 1.67x |
| 80% | 1.25x |
That is why a software company with high margins can live with a far lower ROAS than a retailer.
Setting A Target ROAS
A target ROAS builds in the profit you want to keep after paying for the ads. If your margin is 40% and you want 10% of revenue left as profit, your ads can cost at most 30% of the revenue they bring in.
Target ROAS = 1 / (gross margin - target profit)
This is the number to give Google Ads or Meta when you use value-based bidding such as Target ROAS or Maximize conversion value.
ROAS Is Not The Whole Story
Ad platforms usually credit themselves with every sale they touched, so platform ROAS tends to run high. Check it against your own sales data, and look at new customer revenue separately from repeat buyers. When ROAS looks weak, the fix is often on the landing page or in the offer, not in the ad account. Our performance marketing team and analytics and tracking service start there.
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ROAS Calculator Questions, Answered.
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What Is A Good ROAS?
There is no single good number. A ROAS is good when it is above your break-even ROAS, which is 1 divided by your gross margin. With a 40% margin, anything above 2.5x is profitable before overheads.
What Is The Difference Between ROAS And ROI?
ROAS compares revenue to ad spend. ROI compares profit to ad spend, so it accounts for the cost of what you sold. This calculator shows both.
How Do I Calculate Break-Even ROAS?
Divide 1 by your gross margin written as a decimal. With a 25% margin, break-even ROAS is 1 / 0.25 = 4x.
Should I Use Platform ROAS Or My Own Data?
Use both. Platform numbers are useful for optimizing inside the platform, while your own sales and CRM data show what the ads really added to the business.
Does Dart Manage Ad Accounts?
Yes. We run Google Ads, Meta ads, LinkedIn ads and more, planned against break-even and target ROAS from day one.
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