OneTaskBy Tim King · Updated
ROAS Calculator
Break-Even ROAS, Profit After Ads and Cost Per Order From Revenue and Margin
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How the ROAS Calculator works
This ROAS calculator divides the revenue a campaign brought in by what it cost. Add your gross margin to see whether the ads made a profit and the ROAS you need to break even, and add the order count to see cost per order and average order value.
ROAS calculator formula
ROAS = revenue from ads ÷ ad spend ACoS = ad spend ÷ revenue from ads × 100 Profit after ad spend = revenue × gross margin − ad spend Break-even ROAS = 1 ÷ gross margin
ACoS is simply ROAS turned upside down and shown as a percentage, the way Amazon reports it.
Worked example: a profitable campaign
12,000 of revenue on 3,000 of spend is a ROAS of 4.00, or 400%, and an ACoS of 25.0%. At a 40% margin the sales earn 4,800 of gross profit, so 1,800 is left after the ads. Break-even ROAS is 2.50. Over 150 orders, each cost 20.00 in ads and the average order was 80.00.
Worked example: a campaign losing money
5,000 of revenue on 2,500 of spend is a ROAS of 2.00 and an ACoS of 50.0%. At a 30% margin the gross profit is 1,500, so the campaign lost 1,000. It needed a ROAS of 3.33 to break even.
ROAS reference table
Break-even ROAS and the highest ACoS you can afford at each gross margin.
| Gross margin | Break-even ROAS | Maximum ACoS |
|---|---|---|
| 5% | 20.00 | 5% |
| 10% | 10.00 | 10% |
| 15% | 6.67 | 15% |
| 20% | 5.00 | 20% |
| 25% | 4.00 | 25% |
| 30% | 3.33 | 30% |
| 35% | 2.86 | 35% |
| 40% | 2.50 | 40% |
| 45% | 2.22 | 45% |
| 50% | 2.00 | 50% |
| 55% | 1.82 | 55% |
| 60% | 1.67 | 60% |
| 65% | 1.54 | 65% |
| 70% | 1.43 | 70% |
| 75% | 1.33 | 75% |
| 80% | 1.25 | 80% |
| 85% | 1.18 | 85% |
| 90% | 1.11 | 90% |
| 95% | 1.05 | 95% |
| 100% | 1.00 | 100% |
Quick answers
- A ROAS of 4 means 4 of revenue for every 1 spent.
- A ROAS of 4 is the same as an ACoS of 25%.
- At a 50% margin you break even at a ROAS of 2.
- Your maximum ACoS equals your gross margin.
- ROAS counts revenue, not profit, so always check it against margin.
- Divide ad spend by cost per order to see how many orders a budget buys: 3,000 at 20 is 150 orders.
FAQ
What is a good ROAS?
Any ROAS above your break-even figure is profitable on the first sale. A shop with a 50% margin breaks even at 2, so 3 or 4 is healthy, while a low-margin reseller may need 6 or more.
What is the difference between ROAS and ROI?
ROAS compares revenue with ad spend alone. ROI compares profit with the whole investment, so it takes off product costs as well and gives a much smaller number for the same campaign.
Should ROAS include repeat purchases?
Platform reports usually count only the first order within an attribution window. If customers come back, a lower first-order ROAS can still pay off, which is where customer lifetime value comes in.
See also: all Profit & Growth tools, Rates & Pricing, Invoicing & Payments.
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