ROAS Calculator

ROAS (return on ad spend) is the revenue you generate for every dollar of ad spend. The formula is ROAS = total revenue / ad spend. A 4x ROAS means you generated $4 of revenue per $1 spent. ROAS is the top-line number; profitability also depends on gross margin and your break-even ROAS.

Channel-dependent. E-commerce direct response typically targets 4x ROAS; Google Search Ads on high-intent keywords can hit 5-8x; LinkedIn and other B2B paid social often work at 2-4x ROAS because of higher LTV. Display and awareness campaigns work below 2x ROAS because the value is upstream of the click. The calculator includes benchmarks for 6 channels.

ROAS measures revenue per ad-spend dollar (top-line). ROI (return on investment) measures profit per dollar invested (bottom-line), and accounts for cost of goods, shipping, returns, and operating costs. A campaign can have great ROAS but bad ROI if margins are thin. That's why we include the margin field — it converts ROAS into break-even and profit.

Break-even ROAS = 1 / your gross margin (as a decimal). So at 50% margin, you need 2x ROAS to break even. At 25% margin, 4x. At 75% margin, 1.33x. Our calculator does this automatically when you enter your margin %. Anything above break-even is profit; below means you're spending more on ads than you're netting.

Depends on your margin. At 80% margin (typical pure-software SaaS), 3x ROAS = ~2.7x profit multiple — excellent. At 30% margin (typical e-commerce), 3x ROAS only breaks even after COGS — you need 4x+ to actually profit. Use the margin field in the calculator to see where you land.

Three common causes: (1) ad fatigue — your creative has been seen by your best audience too many times, so CTR drops and CPC rises, (2) auction competition increases in your category as more brands bid on the same audience, (3) you scaled spend beyond your highest-intent audience and started bidding on less-qualified impressions. Solutions: refresh creative weekly, broaden targeting only when the budget demands it, segment campaigns by intent.

Yes — the most common ROAS killer is creative fatigue, and the most direct fix is more creative variants. Our UGC video flow ships 5-10 ad variants per week from one brief, which keeps the audience seeing fresh creative and prevents the CTR-decay that drives ROAS down.