ROAS Calculator — return on ad spend and break-even point

ROAS Calculator — with break-even ROAS

ROAS = ad revenue ÷ ad spend. Spending 2,000 to make 10,000 is a ROAS of 5.0 (500%). Break-even ROAS = 1 ÷ profit margin.

Estimates for information only — not financial advice. Actual terms, fees, and rates depend on your provider.

ROAS says how much revenue each unit of ad spend returned. The number that actually decides profitability is break-even ROAS: with a 40% margin you need at least 2.5, because 60% of revenue is already cost of goods.

Formula & methodology

ROAS = revenue ÷ spend (also shown ×100 as a percentage). Break-even ROAS = 1 ÷ margin — the revenue multiple needed so gross profit exactly covers the ad cost.

Worked example

Spend 2,000, revenue 10,000 → ROAS 5.0 (500%). With a 40% margin, break-even is 2.5: this campaign is profitably above it — a ROAS of 2.0 with the same margin would be losing money despite doubling spend into revenue.

Limits

Platform-reported revenue depends on attribution windows and can overcount. ROAS ignores lifetime value and organic effects. Assumptions, not promises.

Frequently asked questions

Is a ROAS of 2 good?

Only if your break-even ROAS is below 2. With a 40% margin, break-even is 2.5 — a ROAS of 2 loses money there despite doubling ad spend into revenue.