ROAS Calculator
See exactly what your ad spend returns — ROAS, true profit, ROI, and the break-even ROAS your margins actually require. Adjust the numbers and watch it update live.
ROAS is revenue ÷ ad spend. But ROAS alone lies — a 4× ROAS on a 20% margin loses money. Break-even ROAS (1 ÷ margin) is the real line you have to clear. Anything above it is profit; anything below is a leak.
DigiJaws engineers AI media buying that tracks every dollar to closed revenue — with zero wasted spend.
Deploy Paid Media →What is ROAS? (the formula)
Return on ad spend (ROAS) measures how much revenue you earn for every dollar spent on advertising. The ROAS formula is simple:
ROAS = Revenue from ads ÷ Ad spend
Example: $4,000 in revenue from $1,000 of ad spend is a 4.0 ROAS (4:1) — four dollars back for every dollar spent. Use the calculator above to get yours instantly, with your true profit and break-even ROAS.
Break-even ROAS calculator
Break-even ROAS is the minimum ROAS you need just to cover your costs — anything above it is profit. The formula is:
Break-even ROAS = 1 ÷ profit margin
Example: with a 40% profit margin, 1 ÷ 0.40 = 2.5. You need $2.50 in revenue per $1 of ad spend just to break even. The calculator above factors in your margin, so enter it to see your break-even ROAS automatically.
What is a good ROAS?
A common target is 4:1 (400%), but the honest answer is “anything above your break-even ROAS.” Low-margin businesses need a higher ROAS to turn a profit; high-margin businesses can profit at a lower one. Always compare your ROAS to your break-even number, not a generic benchmark.
How to calculate ROAS, step by step
- Total the revenue attributable to your campaign.
- Total the ad spend for the same period.
- Divide revenue by spend — that is your ROAS.
- Compare it to your break-even ROAS (1 ÷ margin) to confirm you are actually profitable.
ROAS vs ROI
ROAS measures revenue per ad dollar; ROI measures profit per ad dollar after all costs. A 4:1 ROAS can still lose money if margins are thin, so always check break-even ROAS and ROI alongside it.