50% gross margin
- Attributed revenue
- $3,000
- Ad spend
- $1,000
- ROAS
- 3× ROAS
- Gross margin
- 50%
- Basic break-even ROAS
- 1 ÷ 50% = 2×
Return on Ad Spend
Free ROAS Calculator
See how much attributed revenue each ad dollar brought back—as a multiplier and a percentage. Use spend and attributed revenue from the same period.
Updates as you type
Runs in your browser
Revenue ÷ ad spend
ROAS Calculator
Edit either value for an instant result
Example values are shown. Replace them with your own campaign numbers.
Use the same time period and currency for both inputs.
The amount paid for ads during the selected period.
$
Revenue attributed to those ads during the same period.
$
Your ROAS
5.00× ROAS500% ROAS
Every $1 spent brought in $5 in attributed revenue.
Attributed revenue is 4,000 above ad spend. That gap still has to cover product costs, fees, returns, and other costs, so this is not proof of profit.
Hypothetical example
Why can the same 3× ROAS look good—or thin?
Basic break-even ROAS formula: 1 ÷ gross margin
25% gross margin
- Attributed revenue
- $3,000
- Ad spend
- $1,000
- ROAS
- 3× ROAS
- Gross margin
- 25%
- Basic break-even ROAS
- 1 ÷ 25% = 4×
What changes the call?
At 3× ROAS, scenario one is above the 2× basic break-even ROAS, while scenario two is below the 4× basic break-even ROAS. Gross margin moved the bar—not a different ROAS result.
So is 3× good? Not by itself. Judge ROAS against the cost structure it still has to cover.
What this example leaves out
- This example uses gross margin only.
- It does not include fees, returns, shipping, tax, overhead, or attribution error.
- It does not calculate full profit, ROI, POAS, benchmarks, or a budget recommendation.
Before you calculate
Did both inputs come from the same campaign scope?
A correct formula can still mislead you when the dates, currencies, or attribution rules do not match.
Match the time period
Compare spend and attributed revenue from the same day, week, month, or reporting window.
Match the currency
Convert both values to one currency before calculating. ROAS is a ratio, so the currency symbol does not change the result.
Keep attribution consistent
Use revenue credited to the ads under one attribution method. Do not mix total store revenue with campaign spend.
Formula and example
How do you calculate ROAS?
Divide attributed ad revenue by ad spend. The multiplier and the percentage are the same result—multiply the ratio by 100 for the percent form.
Attributed revenue
$5,000
÷ Ad spend
$1,000
= ROAS
5.00× / 500%
$5,000 ÷ $1,000 = 5.00× ROAS. The same result is 500% ROAS, or $5 in attributed revenue for every $1 spent.
What can ROAS tell you—and what can it not?
Use ROAS to read advertising revenue efficiency. Do not treat it as a complete profit calculation.
ROAS can help you
- Measure attributed revenue returned per unit of ad spend.
- Compare campaigns that use the same scope and attribution rules.
- Spot changes in revenue efficiency over time.
ROAS cannot tell you
- Whether the campaign is profitable after product costs, fees, returns, shipping, tax, and overhead.
- Whether the source platform credited every sale correctly.
- A universal good or bad target; your profitable floor depends on your margins and costs.
ROAS vs ROI: which question are you answering?
ROAS asks how efficiently ads return attributed revenue. ROI asks whether you made money after a wider cost base.
ROAS — advertising efficiency
Attributed revenue ÷ ad spend
Use it to compare how much attributed revenue your ads return. This calculator has the two inputs needed for that job.
ROI — return on investment
Profit ÷ total investment × 100
Use it to judge profitability after all relevant revenue and costs. Ad spend and attributed revenue alone are not enough to calculate ROI.
After you calculate
What do you need to answer next?
Find your profitable floor
Use gross margin to calculate the minimum ROAS needed to cover your costs.
Plan around a target
Convert a target ROAS into the spend or revenue needed for a campaign plan.
Apply platform context
Use the same core formula with labels and guidance for the platform you report from.
Method and trust
What are the limits of this calculator?
It runs one published formula. It does not grade your result, estimate profit, or send your campaign values to a server.
Official definition
Google Ads defines ROAS as total conversion value divided by total spend and represents it as a percentage.
Read the Google Ads glossaryScope
This page calculates basic ROAS from attributed ad revenue and ad spend. It does not calculate incremental ROAS, profit, or ROI.
Local calculation
The calculation happens in your browser. The values entered in these fields are not submitted to this site.
Reviewed
Last updated August 1, 2026. Formula and page boundaries reviewed against the linked Google Ads definition.