ROAS Calculator
Calculate your Return on Ad Spend in seconds — and see whether your ads actually make money once product costs are included.
Your numbers
Optional — unlocks the profitability check
Results
Add your profit margin to see whether this ROAS is profitable.
The ROAS formula
ROAS = Revenue from ads ÷ Ad spend
ROAS (Return on Ad Spend) tells you how much revenue you generate for every dollar you put into advertising. A ROAS of 3 means $3 of revenue per $1 of ad spend.
Revenue alone doesn't pay your bills — ROAS ignores product costs, shipping and fees. That's why the profitability check compares your ROAS against your break-even ROAS, which depends on your profit margin.
How to use this calculator
- 1
Enter what you spent on ads in a given period — one campaign, one ad set, or your whole account.
- 2
Enter the revenue those ads generated in the same period (use your attribution window consistently).
- 3
Optionally add your profit margin before ad costs — the calculator then shows your break-even ROAS and whether you are actually profitable.
Why ROAS alone can mislead you
A high ROAS looks great in the ads manager, but it says nothing about profit. If your product margin is thin, even a ROAS of 4 can lose money; with a strong margin, a ROAS of 2 can be very profitable.
The number that connects the two worlds is your break-even ROAS: 1 divided by your profit margin. Anything above it is profit, anything below it is a loss — regardless of how impressive the raw ROAS looks.
That's why serious media buyers always evaluate ROAS together with margin. This calculator does exactly that in one step.
How dropshippers should read their ROAS
In dropshipping, your margin before ads is driven by product cost, shipping and payment fees. Those numbers decide how much room your ads have.
If your ROAS sits below break-even, you have two levers: improve the ads (better creatives, better targeting) or improve the margin (better price, cheaper fulfillment).
Track ROAS per campaign, not just per account — averages hide both your winners and the campaigns silently burning budget.
Frequently asked questions
What is a good ROAS?
There is no universal number — it depends entirely on your profit margin. Your personal benchmark is your break-even ROAS (1 ÷ margin). A store with a 50% margin breaks even at a ROAS of 2, a store with a 25% margin needs a ROAS of 4 for the same result.
What is the difference between ROAS and ROI?
ROAS compares ad revenue with ad spend only. ROI compares your total profit with your total investment, including product costs, shipping, fees and tools. ROAS answers 'do my ads convert efficiently?', ROI answers 'am I making money overall?'.
What is break-even ROAS (BEROAS)?
The ROAS at which you make exactly zero profit: revenue covers ad spend plus all product-related costs. It is calculated as selling price divided by your contribution margin — or simply 1 ÷ profit margin. Our BEROAS calculator computes it from your real cost structure.
Should I calculate ROAS per campaign or per account?
Both, but decisions happen at campaign level. Account-wide ROAS is useful as a health metric; campaign ROAS tells you where to scale and where to cut.