ROAS Calculator
Calculate your return on ad spend, break-even point, and profit — compared against platform benchmarks.
How this is calculated
ROAS is revenue from ads divided by ad spend. But ROAS alone doesn't tell you if you're profitable — that depends on your gross margin. Break-even ROAS is 100 divided by your gross margin percentage: at a 60% margin, you need a ROAS of at least 1.67× just to cover the cost of goods sold on what you're selling; anything above that is genuine profit.
Net profit from ads is gross profit (revenue × margin) minus ad spend, and margin on ad spend (MoAS) expresses that profit as a percentage of what you spent — a more intuitive "return" figure than ROAS alone. For a related view of overall business health, see the Break-even Calculator.
Frequently asked questions
- What is ROAS?
- Return on ad spend — revenue divided by ad spend. It measures how much revenue is generated per dollar of advertising, before accounting for the cost of goods sold.
- What is a good ROAS?
- It depends entirely on your gross margin. A business at 30% gross margin needs a ROAS of at least 3.33× just to break even, since only 30 cents of every revenue dollar is profit before ad costs. Higher margins lower that break-even bar.
- What is the break-even ROAS?
- The minimum ROAS needed to cover your cost of goods: breakEvenROAS = 100 / grossMarginPct. Below this figure, you are losing money on every ad-driven sale, even though revenue is coming in.
- What is Margin on Ad Spend (MoAS)?
- Net profit from ads as a percentage of spend. A MoAS of 50% means every $1 of ad spend returns $0.50 of profit after the cost of goods sold.
- Are these benchmarks reliable?
- They are industry medians drawn from public aggregated reports (WordStream, Databox, TikTok for Business, LinkedIn). Your specific category, offer, and audience quality will meaningfully affect what ROAS is achievable for you.
- Why is my ROAS lower than the benchmark?
- Could be product-market fit, audience targeting, landing page conversion rate, or bidding strategy — ROAS is an outcome metric that reflects the whole funnel, not just the ad platform.
- ROAS vs ROI — what is the difference?
- ROI accounts for all costs (cost of goods sold, overhead, and ad spend). ROAS only measures revenue divided by ad spend and ignores cost of goods entirely — always check the break-even ROAS to understand true profitability.
- Can I use this in my own app?
- Yes — every calculator on Stupidly Clever has a matching REST API and MCP tool that runs the same underlying logic.