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ROAS Calculator

Calculate Return on Ad Spend (ROAS) and estimate contribution profit after ad spend.

ROAS (return on ad spend) is the fastest way to compare campaigns: attributed revenue divided by ad spend over the same window.

But ROAS is not profit. This calculator also estimates contribution profit after ad spend using margin, fees, shipping, and returns assumptions.

Prefer an explanation- Read the guide.
Related definitions:roasbreak even roastarget roasmerblended roascontribution margin
ROAS: What it is and how to use itPaid ads measurement hub: ROAS, MER, marginal ROAS, and incrementalityIncrementality lift: how to compute incremental ROAS from holdoutsPaid ads funnel: CPM, CTR, CVR -> CPC, CPA, ROAS (with profit)
Use the same attribution model you use for reporting.
$
 
$
Gross margin before marketing (COGS only).
%
Card/processing fees as % of revenue (optional).
%
As % of revenue (optional).
%
As % of revenue (optional).
%
Desired profit after ads as % of revenue (optional).
%
Tip: you can type commas (e.g., 10,000).

Example

Using the default inputs, the result is:
5x
Revenue attributed to ads
$5,000
Ad spend
$1,000
Gross margin
60%
Payment fees
3%
Shipping & fulfillment
0%
Returns & refunds
0%
Target profit after ads
10%

How to calculate

  1. Enter attributed revenue and ad spend for the same time window.
  2. Add your gross margin and variable cost assumptions (fees, shipping, returns).
  3. Review ROAS, break-even ROAS, and contribution profit after ad spend.
  4. Use the profit metrics to decide whether to scale, pause, or improve unit economics first.

Formula

ROAS = Revenue / Ad Spend
  • Revenue and spend are measured over the same time window.
  • Revenue is net of refunds/returns if you want ROAS to reflect reality.
  • ROAS depends on your attribution model and conversion window.

Benchmarks

  • Break-even ROAS is a floor; target ROAS should be higher to cover overhead and volatility.
  • If profit after ads is negative, scaling spend will typically scale losses unless marginal performance improves.
  • Compare ROAS only when attribution windows and conversion value tracking are consistent.

FAQ

What is a good ROAS-
It depends on your margins, fulfillment costs, and fixed costs. A ROAS that looks 'good' can still lose money if margins are low.
What's the difference between ROAS and ROI-
ROAS is revenue divided by ad spend. ROI is profit relative to cost. ROAS can look great while ROI is negative if margins or costs are poor.
Can I use ROAS for subscription businesses-
Yes, but pair ROAS with CAC, payback period, and retention since revenue recurs over time and churn can change profitability.

Common mistakes

  • Mixing attribution windows (for example 7-day click vs 1-day view).
  • Using gross revenue instead of net revenue (refunds and discounts matter).
  • Comparing ROAS across campaigns with different product margins or different value tracking quality.

How to interpret

How to use ROAS
  • Use the same attribution model as your ad platform or analytics reports.
  • Compare ROAS by channel, campaign, and creative to spot winners.
  • Always pair ROAS with margin to avoid 'profitable-looking' losses.
Common pitfalls
  • Mixing attribution windows (for example 7-day click vs 1-day view).
  • Ignoring returns, discounts, shipping, and payment fees.
  • Counting revenue but excluding subscription churn impact.

Related calculators

Paid Ads
Break-even ROAS Calculator
Estimate the break-even ROAS based on contribution margin assumptions.
Paid Ads
Target ROAS Calculator
Estimate a target ROAS to cover variable costs plus a desired margin buffer.
Paid Ads
Paid Ads Funnel Calculator
Model CPM -> CTR -> CVR to estimate CPC, CPA, ROAS, and profit per 1,000 impressions (with margin and variable costs).
Paid Ads
ROI Calculator
Calculate Return on Investment (ROI) for a campaign or project.
Paid Ads
Incrementality Lift Calculator
Estimate incremental conversions, incremental ROAS, and incremental profit from a holdout test.
Paid Ads
Marginal ROAS Calculator
Estimate diminishing returns and find the profit-maximizing ad spend from a simple response curve.

Quick checks

  • Keep attribution model and window consistent when comparing campaigns.
  • Pair efficiency metrics (ROAS/CPA) with profit assumptions (margin, refunds, fees).
  • Validate tracking after site changes (pixels/events can silently break).