ROAS Calculator with Break-Even

Work out return on ad spend, and whether it covers your costs once you add your gross margin.

How to use

What it checks and how it works

ROAS = revenue attributed to ads / ad spend. Google Ads reports it in its Conversion value / cost column. Break-even ROAS = 1 / gross margin: at a 25% margin you need a ROAS of 4 just to cover the ad cost out of gross profit. Gross profit after ad spend = revenue x gross margin - ad spend. ROAS counts revenue, not profit, and the revenue depends on the attribution model and the conversion window, so the figure in an ad platform usually differs from the one in GA4. It leaves out other costs such as shipping, returns, agency fees and overhead. A ROAS above break-even means the ads cover their own cost out of gross margin; it is not a statement about the business's overall profit.

What is a good ROAS?

There is no universal number. It depends on your margin: break-even ROAS is 1 divided by the gross margin, so a business with thin margins needs a much higher ROAS than one with fat margins.

ROAS or ROI?

ROAS divides revenue by ad spend, so it ignores what the product cost you. ROI uses profit. Use ROAS to compare campaigns quickly, and the break-even figure to see whether it pays.

Why does my ad platform show a different ROAS from GA4?

Platforms credit conversions with their own attribution model and window, and they may count conversions GA4 attributes elsewhere. State which source and model you used when you report a figure.

Sources

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