ROAS Calculator
Free tool, no sign-up required
ROAS
0.00x
Breakeven ROAS
3.33x
Profit from Ads
$0
ROI %
0.0%
Return on Ad Spend (ROAS) measures how much revenue you generate for every dollar spent on advertising. It is the standard metric media buyers and e-commerce marketers use to judge whether a Facebook, Google, or TikTok campaign is actually working, before profit or overhead ever enter the picture. It is usually the very first number a media buyer checks after launching a campaign.
Formula
ROAS = Revenue / Ad Spend
Revenue here means the sales directly attributed to the ad spend being measured, and Ad Spend is the total amount paid to the ad platform for that same period, before any other business costs.
Example
Example: you spend $2,000 on Facebook ads and those ads generate $8,000 in revenue. ROAS = 8,000 / 2,000 = 4x, meaning every $1 spent returned $4 in revenue. That does not automatically mean $4 in profit, since product and fulfillment costs still need to come out of that revenue before you know what you actually kept.
Industry Benchmark
3x to 5x is commonly cited as healthy for e-commerce. 2x is often the break-even threshold at a 50% margin, since break-even ROAS = 1 / profit margin, so the right target for your store depends heavily on your actual product margins, not a generic industry number, and should be recalculated whenever your costs change.
FAQ
What's a good ROAS for e-commerce?
Most e-commerce businesses aim for a 3x to 5x ROAS, though the right number depends on your profit margin. At a 50% margin, a 2x ROAS is roughly your break-even point (break-even ROAS = 1 / profit margin), so anything above that starts contributing to actual profit rather than just covering your costs and ad fees.
How is ROAS different from ROI?
ROAS only compares ad spend to revenue and is expressed as a multiple. ROI factors in your total costs, not just ad spend, and is expressed as a percentage of profit. A campaign can post a strong ROAS but a weak ROI if your product margins are thin or fulfillment costs are high, so it pays to check both numbers side by side before scaling a campaign further.
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