ROAS Calculator - Calculate Return on Ad Spend & Break-Even ROAS
Free ROAS calculator to measure your advertising profitability. Calculate your return on ad spend and find your break-even ROAS based on profit margins.
What is ROAS?
ROAS (Return on Ad Spend) measures the revenue generated for every dollar spent on advertising. It's the simplest way to evaluate whether your ads are profitable.
ROAS formula
A ROAS of 4.0 means you generated $4 in revenue for every $1 spent on ads.
How to use this calculator
Understanding break-even ROAS
Your break-even ROAS depends entirely on your profit margins.
| Profit Margin | Break-Even ROAS |
|---|---|
| 20% | 5.0x |
| 25% | 4.0x |
| 33% | 3.0x |
| 50% | 2.0x |
| 66% | 1.5x |
Example: If your profit margin is 25%, you need a ROAS of at least 4.0x just to break even. Anything above 4.0x is profit.
ROAS vs ROI
ROAS is simpler and more commonly used for campaign optimization. ROI gives you the full picture of profitability.
What’s a good ROAS?
It depends on your margins, but general benchmarks:
| ROAS | Interpretation |
|---|---|
| Below break-even | Losing money |
| 1x-2x below break-even | Losing money (but may build awareness) |
| At break-even | Covering costs |
| 1.5x break-even | Healthy profit |
| 2x+ break-even | Strong performance |
Why break-even ROAS matters more than raw ROAS
A 3x ROAS sounds great—until you realize your margins are only 20% and you need 5x to break even. Always calculate your break-even ROAS first, then evaluate campaigns against that threshold.
ROAS by platform (typical ranges)
| Platform | Average ROAS |
|---|---|
| Google Search | 2x - 8x |
| Google Shopping | 3x - 10x |
| Facebook/Instagram | 2x - 5x |
| TikTok | 1.5x - 4x |
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