ROAS Calculator (Return on Ad Spend)
ROAS (return on ad spend) measures how much revenue an advertising campaign earns for every dollar spent. The formula divides revenue generated by the ads by the amount spent on them. A 4x ROAS means four dollars of revenue per dollar of spend. To know if that is actually profitable, compare it to your break-even ROAS, which is one divided by your gross margin.
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Your return on ad spend
Above break-even — each $1 of spend returns a profit at a 60% margin.
Scale paid with GigdePure-math estimate. Real profitability also depends on overhead, fees, and returns.
The formula
ROAS = Revenue from ads ÷ Ad spend. Break-even ROAS = 1 ÷ Gross margin. Profit = (Revenue × Gross margin) − Ad spend.
ROAS tells you the top-line efficiency of ad spend, but on its own it can mislead, because a 4x ROAS is great at a 70% margin and a loss at a 20% margin. That is why the break-even ROAS matters: it is the return you must beat just to cover the cost of goods. Divide one by your gross margin to find it — at a 25% margin you need a ROAS above 4 just to break even, so a campaign reporting exactly 4x is making no profit.
Use this calculator to judge whether a campaign is genuinely profitable, not just busy. Enter revenue, spend, and gross margin to see ROAS, break-even ROAS, and the actual profit or loss after cost of goods. Gigde manages paid media to profit and contribution margin — feeding the ad platforms real conversion and revenue data — rather than optimizing to a ROAS number that looks good but loses money.
Want the number moved for you? Gigde runs ppc & performance advertising as a done-for-you service tied to revenue, not vanity metrics. Get a free growth plan →
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ROAS Calculator FAQs
How do you calculate ROAS?
Divide the revenue generated by a campaign by the amount spent on it. For example, $20,000 in revenue from $5,000 of ad spend is a 4x ROAS, or 400%. This calculator also shows your break-even ROAS and actual profit once gross margin is factored in.
What is a good ROAS?
It depends entirely on your margin. A common rule of thumb is 4x (400%), but the real target is your break-even ROAS — one divided by your gross margin — plus enough headroom for overhead and profit. High-margin businesses can be profitable at a lower ROAS than low-margin ones.
What is the difference between ROAS and ROI?
ROAS measures revenue per dollar of ad spend only, while ROI (or ROMI) accounts for all costs including cost of goods, overhead, and fees. A campaign can show a strong ROAS but a negative ROI if margins are thin, which is why this tool also calculates break-even ROAS and profit.
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