ROAS Calculator

Calculate the minimum profItable ROAS

Current Indicators

Average Order Value ($)

Discount Off ($)

OR Discount Off (%)

Real Product Price / Real Price

Payment Processing Fees ($)

Cost of Goods ($)

Shipping Costs ($)

Fulfillment Cost per Unit ($)

Included Fee / Gift Cost ($)

Your profit margins results

Break even ROAS

1.30

Total Costs

17.85

Net Profit

77.15

Profit Percentage

77.15

FAQs

What does ROAS mean?

ROAS stands for Return on Ad Spend. It shows how much revenue you earn for every dollar you spend on advertising. It’s one of the quickest ways to check if your ads are generating money or driving traffic.

How do you calculate ROAS?

ROAS is calculated by dividing your revenue by your ad spend.
The formula is:
ROAS = Revenue ÷ Ad Spend
For example, if you spend $1,000 on ads and generate $4,000 in revenue, your ROAS is 4.0 (or 400%).

What is a good ROAS?

Most e-commerce brands aim for a ROAS between 3x and 5x, but profitability should always be the final measure.

A “good” ROAS depends on your margins, costs, and business model.

Low-margin products usually need a higher ROAS
High-margin or repeat-purchase brands can operate profitably at a lower ROAS

How do I use the ROAS calculator?

Enter the figures in the “current indicators” section. The calculator instantly shows your ROAS, helping you quickly evaluate your campaigns, channels, or time periods.

What are the benefits of using a ROAS calculator?

Using a ROAS calculator helps you:

Quickly spot underperforming campaigns
Compare channels and platforms easily
Make better scaling decisions
Avoid relying on vanity metrics

It’s a simple tool that brings clarity to ad performance.

Is ROAS the same as ROI?

No. ROAS and ROI are related but not the same.

ROAS focuses only on ad spend versus revenue
ROI (Return on Investment) includes all costs, such as product, shipping, fees, and overhead

ROAS is great for evaluating ads. ROI is better for understanding total business profitability.

Is 800% ROAS good?

Yes, an 800% ROAS (or 8.0 ROAS) is generally considered good.
However, you still need to factor in product costs, fulfillment, and operating expenses to confirm your actual profit.

What does a 2.5 ROAS mean?

A 2.5 ROAS means you earn $2.50 in revenue for every $1 spent on ads. For some brands, it’s profitable. For others, it may mean breaking even or losing money. It all depends on your margins.