Return on ad spend tells you how much revenue each dollar of ads brings. Your margin decides whether that is profitable.
ROAS
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ROAS as a percentage
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Break-even ROAS
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1 ÷ gross margin
Profit after ad spend
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ACoS (ad cost of sales)
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Spend ÷ revenue — the Amazon way to express ROAS
What is the ROAS Calculator?
Return on ad spend (ROAS) shows how much revenue each dollar of ads brings back. But a “good” ROAS depends entirely on your margin: 3× can be great for a digital product and a loss for a low-margin store.
Enter your spend, revenue and margin to see your ROAS, your break-even ROAS and the profit left after ads.
How to use the ROAS Calculator
- Enter your ad spend for the period or campaign.
- Enter the revenue attributed to those ads.
- Enter your gross margin — what is left after product and fulfilment costs.
Understanding your results
- ROAS
- Revenue ÷ ad spend. 3.5× means $3.50 back for every $1.
- Break-even ROAS
- 1 ÷ margin. With a 60% margin you need 1.7× just to break even.
- ACoS
- Ad cost of sales — spend ÷ revenue. The Amazon way to express the same thing.
Frequently asked questions
What is a good ROAS?
Above your break-even ROAS. As a rough guide: 4× is strong for e-commerce; digital products can profit at 1.5–2×.
How do I calculate break-even ROAS?
Divide 1 by your gross margin. A 40% margin needs a 2.5× ROAS to break even.
Why is my ROAS high but I’m not making money?
Your margin may be lower than you think, or refunds, fees and returns aren’t counted.