Free tool
Plug in your numbers and see the return your campaigns actually have to clear before they make you money. No signup to use it.
Free calculator
Most accounts guess the target they set their bidding to. Here's the number to actually aim for. Two numbers set the real floor: your gross margin and your spend. Everything below the breakeven line is loss dressed up as revenue.
The calculator runs in your browser. Your numbers aren't stored or sent anywhere.
The share of each sale you keep after the cost of the product or service.
What you pay the ad platform each month.
What a typical customer spends in one go.
Breakeven ROAS
2.5x
Target ROAS to aim for
3.3x
Revenue to break even
$7,500/mo
Sales to break even
63/mo
At a 40% margin, every dollar of ad spend needs $2.50 back just to break even. Set a target ROAS of 330% so your bidding optimises for profit, not activity.
Most accounts sit under this line. Find out if yours does, in a free 30-minute audit.
Book a strategy callThe difference
Two numbers, two jobs. One tells you when you stop losing money. The other tells you how much you're actually making.
The minimum return before you lose money, which is simply one divided by your margin. The calculator above finds your floor: the number every campaign has to clear just to stand still. Anything under it is a loss dressed up as revenue.
What you actually keep once the cost of what you sell and the ad spend come out. The calculator below shows where you stand today, or what a new budget would return, so you can aim well above the floor, not just scrape it.
Free ROAS calculator
ROAS without margin is a vanity number. This calculator works out what your ads return after the cost of what you sell, for any paid channel.
What you pay the ad platform each month.
The revenue those ads brought in.
The share of each sale you keep after the cost of the product or service.
Your ROAS
3.0x
Profitable. Every ad dollar makes money after costs.
Return needed to break even
2.2x
Profit left each month
$1,050
Kept per $1 spent on ads
$0.35
The budget you're thinking about.
What one click costs on average. Most ad platforms show this for your industry.
Out of every 100 people who click, how many buy.
What a typical customer spends in one go.
The share of each sale you keep after the cost of the product or service.
Projected ROAS
3.0x
Profitable. Every ad dollar makes money after costs.
Clicks per month
1,500
Sales per month
60
Projected revenue
$9,000
Cost per sale
$50
Return needed to break even
2.2x
Profit left each month
$1,050
You're making money. Want to push this higher? Book a strategy call.
Book a strategy callRevenue divided by ad spend. A 3x ROAS means every dollar of ads brought back three dollars of revenue. It says nothing about profit until margin enters the picture.
One divided by your gross margin. At a 45% margin you need 2.2x just to cover the cost of goods and the ads. Anything below this line is a loss wearing a revenue costume.
What's left after paying for the products and the ads. Revenue is money moved; this is money kept, and it's the number your bidding targets should answer to.
The calculator runs in your browser. Your numbers aren't stored or sent anywhere.
Ready to act on it
Whatever the number landed on, the next move is the same: tighter campaigns that clear the line with room to spare.
Questions, answered
ROAS is return on ad spend: the revenue your ads generated divided by what you spent on those ads. A 3x ROAS means every dollar of ads brought back three dollars of revenue. On its own it says nothing about profit until your margin enters the picture.
Breakeven ROAS is the minimum return before you lose money, which is one divided by your gross margin. At a 50% margin you need 2x just to cover the cost of what you sell and the ads. Anything below that line loses money, even when the dashboard looks busy.
A good ROAS is one that sits comfortably above your breakeven, with profit left over after the cost of goods and the ad spend. Because breakeven moves with your margin, there is no single magic number: the same 3x return can be healthy on a high margin and a loss on a thin one.
Divide the revenue your ads generated by what you spent on those ads. To know whether that return is actually profitable, take your gross margin off the revenue first, then subtract the ad spend to see what you keep.
No. ROAS measures revenue against spend, not profit. The number that matters is what is left after paying for both the products and the ads, which is why your margin has to enter the calculation.