How to use the ROAS Calculator
- 1
Enter ad spend and the revenue those ads produced.
- 2
Add product cost, shipping and payment fees as a percent of order value.
- 3
Use break-even ROAS and max CPA as the floor for your campaign targets.
ROAS vs. break-even ROAS
ROAS is revenue ÷ ad spend. A 4x ROAS means $4 of revenue for every $1 spent. Whether that is profitable depends on your margin: break-even ROAS = 1 ÷ gross margin after product, shipping and fees. With a 40% margin you need 2.5x just to break even.
Max CPA
Your maximum cost per acquisition is the profit in an average order (average order value × margin). Bid above it and every sale loses money, unless repeat purchases make up the difference.
- Use average order value from the same period as your spend
- Include returns in your fee percent if they're significant
- Set target ROAS above break-even to leave room for profit
Lower your blended cost with organic
Collection and product pages that rank on Google bring orders with no click cost. Growing organic revenue lowers your blended acquisition cost and makes paid campaigns easier to scale.
Frequently asked questions
What is a good ROAS?
There's no universal number. A good ROAS is one comfortably above your break-even ROAS, which depends entirely on your margins.
How do I calculate break-even ROAS?
Divide 1 by your gross margin as a decimal. A 25% margin means a break-even ROAS of 4.0.
ROAS or ROI?
ROAS looks at revenue per ad dollar. ROI looks at profit. This calculator shows both so you can see the full picture.
Is my data stored?
No. Everything is calculated in your browser.