Free Calculator 2026 Benchmarks
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Free ROAS Calculator

ROAS Calculator

Use this free ROAS calculator to find your return on ad spend in seconds — plus your break-even ROAS, ACOS, and real ad profit once margin is factored in.

Break-even ROASProfit & ACOSLive resultsNo email required

Your Campaign Numbers

Results update live as you type

$
$
55%

Your profit margin before ad costs — powers break-even and profit metrics.

Figures are in CAD. ROAS measures revenue against ad spend only; profit metrics use your gross margin.

Profitable — above break-even
ROAS4.50x450% return on ad spend
ACOS22.2%Ad cost of sale (inverse of ROAS)
Break-Even ROAS1.82xMinimum ROAS to not lose money
Gross Profit from Ads$2,950Margin revenue minus ad spend
Profit ROAS2.48xReturn on the profit, not just revenue

Aim to stay comfortably above your break-even ROAS of 1.82x. The further above it you are, the more room you have to scale spend profitably.

How to use

How to Use the ROAS Calculator

Enter two numbers and you'll get your ROAS instantly:

  • Revenue from ads — the total sales revenue generated by the campaign you're measuring.
  • Ad spend — how much you paid the ad platform over the same period.

Add your gross margin % to unlock profit-aware metrics: your break-even ROAS, gross profit, and profit ROAS. This is what separates a vanity ROAS from a number you can actually make budget decisions on.

Formula

ROAS Formula

ROAS = Revenue from Ads ÷ Ad Spend

Related formulas this calculator uses:

  • ROAS % = ROAS × 100
  • ACOS % = Ad Spend ÷ Revenue × 100 (the inverse of ROAS)
  • Break-even ROAS = 1 ÷ Gross Margin
  • Gross Profit = (Revenue × Gross Margin) − Ad Spend
  • Profit ROAS = (Revenue × Gross Margin) ÷ Ad Spend
Example

Example ROAS Calculation

Say you spent $2,000 on Google Ads last month and that campaign generated $9,000 in revenue, at a 55% gross margin:

  • ROAS = $9,000 ÷ $2,000 = 4.5x (450%)
  • ACOS = $2,000 ÷ $9,000 = 22.2%
  • Break-even ROAS = 1 ÷ 0.55 = 1.82x
  • Gross profit = ($9,000 × 0.55) − $2,000 = $2,950

Because your 4.5x ROAS is well above the 1.82x break-even, the campaign is clearly profitable — and you have room to scale spend.

Benchmarks

What Is a Good ROAS?

There's no universal "good" ROAS — it depends entirely on your margins — but these rough industry ranges help you sanity-check:

  • 2:1 – 3:1 — common for high-margin services and lead generation; often very profitable.
  • 4:1 — the classic "healthy" e-commerce benchmark most brands aim for.
  • 5:1 – 8:1+ — needed for low-margin or high-overhead businesses to net a real profit.

Always compare against your own break-even ROAS first. A 3:1 ROAS is excellent at a 70% margin but loss-making at a 25% margin.

Optimization

How to Improve Your ROAS

  • Raise conversion rate. A faster, clearer landing page turns the same ad spend into more revenue — the highest-leverage fix.
  • Increase average order value. Bundles, upsells, and order-bumps lift revenue per click without raising ad cost.
  • Cut wasted spend. Add negative keywords, exclude poor placements, and pause non-converting audiences.
  • Tighten targeting. Retargeting and high-intent audiences almost always return a higher ROAS than cold, broad traffic.
  • Improve creative & offer. Stronger hooks and a sharper offer raise click-through and conversion, compounding your ROAS.

Related Calculators

Common Questions

Frequently Asked Questions

ROAS (Return on Ad Spend) measures how much revenue you earn for every dollar spent on advertising. It is calculated as revenue from ads ÷ ad spend. A ROAS of 4 (or 4:1) means you earned $4 in revenue for every $1 spent on ads. It is the single most important metric for evaluating paid advertising performance.

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