ROAS Calculator
CheckedThis ROAS calculator gives return on ad spend, then a profit-adjusted ROAS that counts the cost of the goods you sold. Free, no sign-up, and the result updates as you type.
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ROAS measures revenue against ad spend, and revenue is not money you keep. A campaign returning 3× looks like a triple until you remember that roughly 60 cents of every dollar walked straight back out as product cost, marketplace fees and shipping. The profit-adjusted ROAS below divides gross profit by ad spend instead, which moves the line between winning and losing to a flat 1.00× regardless of what your margin happens to be.
How it's calculated
ROAS = revenue ÷ ad spend Profit ROAS = (revenue − COGS) ÷ ad spend
LaTeX source
\text{ROAS} = \frac{R}{S} \qquad \text{Profit ROAS} = \frac{R \times (1 - c)}{S} Worked examples
A 3× campaign on a 40% gross margin
3.00× ROAS, 1.20× profit-adjusted
$12,000 of revenue on $4,000 of spend is a 3.00× ROAS and a 33.3% ACOS. At a 40% gross margin that revenue carries $4,800 of gross profit, so after the $4,000 of ads the campaign clears $800 — a profit-adjusted ROAS of 1.20×. Real, but a fifth of what the headline number implies.
The numbers used
- Attributed revenue
- 12000
- Ad spend
- 4000
- COGS as % of revenue
- 60
The identical 3× on a 30% gross margin
3.00× ROAS, 0.90× profit-adjusted
$9,000 on $3,000 of spend is the same 3.00× ROAS and the same 33.3% ACOS. But a 30% gross margin leaves only $2,700 of gross profit against $3,000 of ads, so the campaign loses $300. The profit-adjusted ROAS of 0.90× says it plainly: every dollar spent came back as 90 cents.
The numbers used
- Attributed revenue
- 9000
- Ad spend
- 3000
- COGS as % of revenue
- 70
Questions sellers ask
How do you calculate ROAS?
Divide the revenue attributed to a campaign by what you spent on it. $12,000 of revenue on $4,000 of ads is a 3.00× ROAS, usually written 3:1. The number tells you nothing about profit on its own, because revenue includes the cost of the goods you shipped. Divide gross profit by ad spend instead and 1.00× becomes the break-even line for any margin structure.
Is a 2.5 roas good?
It is good if your gross margin is above 40%, and loss-making if it is below. A 2.5× ROAS means ads cost 40 cents of every revenue dollar, so a 40% gross margin lands exactly on break-even with nothing left for overhead. At a 50% margin the same 2.5× clears 10 cents on the dollar; at a 30% margin it burns 10. The benchmark is your margin, not an industry average.
What roas is 25% ACoS?
A 25% ACOS is a 4.0× ROAS, because the two are reciprocals: ROAS = 100 ÷ ACOS. A 50% ACOS is 2.0×, a 20% ACOS is 5.0×, and a 10% ACOS is 10.0×. Amazon sellers usually quote ACOS and Google or Meta advertisers usually quote ROAS, but they describe the same ratio from opposite ends.
What does 4:1 roas mean?
It means $4 of revenue for every $1 of ad spend, which is a 4.0× ROAS and a 25% ACOS. Agencies quote it in colon form because it sounds like a return multiple, but it is a revenue ratio. On a 35% gross margin, 4:1 leaves $1.40 of gross profit per dollar spent, so the actual return on the advertising is 40 cents, not $3.
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