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ROAS Calculator

ROAS is the revenue you earn for every dollar of ad spend. This ROAS calculator turns spend and revenue into a single number that drives a budget decision, which campaigns get more money, which get cut, and which need a margin check before you scale them.

Return on ad spend
How it works

How to calculate return on ad spend

ROAS = Revenue from ads ÷ Ad spend

Revenue from Ads – The Sales Revenue attributed to the campaign over the period you are measuring. Use the same window and the same attribution setting for every campaign, or the numbers are not comaparable.

Ad Spend – Everything you paid the platform in that same window: clicks, impressions, and platform fees. Management fees and creative costs sit outside ROAS, they belong to ROI.

For example, if a Meta Campaign spend $3,000 in a month and is credited with $12,000 in revenue. ROAS = $12,000/$3,000 = 4. You earned $4 of revenue per $1 Spent. That looks strong, but a 25% profit margin break-even is also 4, so the campaign made nothing. Check your margin before you call it a winner.

FAQ

Frequently asked questions

What is a good ROAS? +
A good ROAS above your break-even point, which is 1 divided by your profit margin. At a 40% margin you break even at 2.5; at a 25% margin you need 4.0. Databox puts the median Facebook purchase ROAS at 3.16, which clears one of those and fails the other.
Is a 3x ROAS good? +
It depends entirely on margin. At a 40% contribution margin break-even is 2.5, so 3.0 is profitable. At a 25% margin break-even is 4.0, so 3.0 is a loss. Run your own margin though the Website Pandas break-even ROAS calculator before you call any multiple good.
Is ROAS the same as ROI? +
No, ROAS compares revenue to ad spend only. ROI compares profit to total cost, including product costs, shipping, and management fees. A 4.0 ROAS is a top- line ad metric; ROI is the bottom-line business number. Website Pandas tracks both, because a campaign can win on one and lose on the other.
What ROAS do I need to break even? +
Divide 1 by your contribution margin. A 20% margin needs 5.0, a 40% margin needs 2.5. That number is your floor, not your target. The break-even ROAS calculator on this site does the division for you and takes one input: your profit margin after cost of goods and variable costs.
Why is my platform ROAS higher than my real revenue? +
Ad platforms attribute conversions to themselves. Meta, Google, and TikTok each claim sales that other channels also touched, so their reported ROAS overstates incremental return. Databox’s median Facebook purchase ROAS of 3.16 carries the same bias. Compare platform ROAS again total store revenue before you trust the multiple.
Should ROAS include agency fees and product costs? +
No. ROAS uses ad spend only, so product costs, shipping, and management fees stay out of it. Those belong in ROI. Those costs change your ROI, never your ROAS. Website Pandas prices Google Ads management from $500 per month or 20% of ad spend, whichever is higher.

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