Free ROAS Calculator and Formula.
Return on Ad Spend in plain numbers. Enter ad revenue and ad cost. See your ROAS, profit per dollar spent, and whether you are above the healthy benchmark.
Calculate your ROAS
Enter the revenue your ads generated and what you spent. The result updates as you type.
Three numbers, three answers.
ROAS = Revenue from ads ÷ Ad spend. That is the whole formula. The number is a decimal ratio, so 4.5 means $4.50 of revenue for every $1 spent.
Two extensions matter for real decisions. Gross profit equals revenue times margin. Net contribution equals gross profit minus ad spend. ROAS alone hides whether the campaign actually made money. Net contribution is what hits the bank.
Break-even ROAS is the inverse of your gross margin. A 25 percent margin breaks even at ROAS 4. A 40 percent margin breaks even at ROAS 2.5. A 70 percent margin breaks even at ROAS 1.43. Below break-even, the campaign loses money no matter how big the ROAS number looks at a glance.
A Shopify store at 30 percent margin.
ROAS equals 18,900 divided by 4,200, which is 4.5. Every dollar spent earned $4.50 back in top-line revenue.
Gross profit at 30 percent margin equals 18,900 times 0.30, which is $5,670. Net contribution after ad spend equals 5,670 minus 4,200, which is $1,470. That is $0.35 of real profit per dollar of ad spend.
Verdict. ROAS 4.5 with a 30 percent margin is above the break-even point of 3.33. The campaign is profitable, but the cushion is thin. A 20 percent CPC rise or 20 percent CVR drop pushes it into the red.
ROAS questions, answered.
What is a good ROAS?
A good ROAS depends on your product margin. For most ecommerce brands with 25 to 35 percent margins, ROAS of 4 or higher is healthy. For software with 70 to 85 percent margins, ROAS of 1.5 to 2 already covers cost. The right benchmark is the ROAS at which you break even on contribution margin.
Quick rule. Take 1 and divide by your gross margin. That is your break-even ROAS. Anything above it is profitable.
How is ROAS different from ROI?
ROAS measures revenue returned per dollar of ad spend. ROI measures profit returned per dollar of all costs, including ad spend, product cost, fulfillment, and overhead. ROAS is faster to calculate. ROI is closer to the truth about whether a campaign actually made money.
How do I find ROAS in Google Ads?
Google Ads exposes ROAS as the Conv. value / cost column. Open any campaign report, add the Conv. value / cost column, and it appears alongside cost and conversion value. The number is a decimal ratio, so 4.20 means $4.20 in conversion value per $1 of ad spend.
If the column shows zero, conversion tracking is not wired correctly or no conversions have been recorded in the selected date range.
Is a ROAS of 4 good?
ROAS of 4 is the default benchmark in most ecommerce playbooks because a 25 percent gross margin breaks even at ROAS 4. If your gross margin is higher than 25 percent, ROAS 4 is profitable. If your margin is lower, ROAS 4 still loses money on the campaign.
What is the difference between ROAS and POAS?
ROAS uses revenue. POAS, or Profit on Ad Spend, uses gross profit instead of revenue. POAS is harder to compute because it needs product cost per sale, but it removes the trap of high-revenue, low-margin sales looking profitable when they are not.
Why is my ROAS dropping?
Four common causes. One, audience saturation, where the campaign has shown to most of its high-intent buyers and is now reaching colder users. Two, increased competition raising CPC during peak season. Three, a creative that has lost novelty after a long run. Four, broken or partial conversion tracking, where revenue is real but not being attributed.
If the drop is sharp and recent, suspect tracking first. Slow declines usually point to saturation or creative fatigue.
Ask Claude for your live ROAS in plain English.
Connect your Google Ads, Meta, LinkedIn, and TikTok to PaidSync. Then ask Claude or ChatGPT what was my ROAS last week across all channels. No dashboards, no spreadsheets, no waiting for Monday.