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.
Results update live as you type
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.
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.
Enter two numbers and you'll get your ROAS instantly:
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.
Related formulas this calculator uses:
Say you spent $2,000 on Google Ads last month and that campaign generated $9,000 in revenue, at a 55% gross margin:
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.
There's no universal "good" ROAS — it depends entirely on your margins — but these rough industry ranges help you sanity-check:
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.
There is no single "good" ROAS — it depends entirely on your margin. A 2x ROAS is excellent for a business running 70% margins and catastrophic for one running 20%. These are the ranges we typically see across Canadian accounts we audit:
| Sector | Typical ROAS | What drives it |
|---|---|---|
| E-commerce (physical goods) | 3x – 5x | Margins of 25–45% mean break-even usually lands near 2.5x. |
| Subscription / SaaS | 1x – 2x on first order | Acceptable because the payback comes over the subscription lifetime, not the first sale. |
| Local services (trades, clinics) | 5x – 12x | High margins on labour mean even modest ROAS is very profitable. |
| Automotive (dealership) | 8x – 20x | Revenue per unit is large, so raw ROAS looks inflated — judge on gross per unit instead. |
| Luxury / high-consideration | 2x – 4x | Long sales cycles mean much of the return lands outside the attribution window. |
Compare your number against your own break-even ROAS before comparing it to anyone else's. Break-even is 1 ÷ gross margin: at 40% margin you need 2.5x just to stand still, so a 3x ROAS is a thin 20% cushion — not the runaway success it can look like in a platform dashboard.
ROAS is a ratio, so you improve it by raising revenue per click or lowering cost per click. In practice, the order below is roughly the order of effort-to-payoff:
Finally, be careful about scaling on a strong ROAS alone. ROAS almost always falls as spend rises, because you exhaust the cheapest demand first. The question worth answering is not "what is my ROAS?" but "what is my ROAS on the next dollar?" — and that is a marginal calculation, not an average one.
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.
We build and manage high-ROAS Google and Meta ad campaigns for businesses across Canada. Get a free audit of your current numbers.