1
Enter ad spend and revenue
Type the total spend on the campaign and the revenue your analytics or ad platform attributes to it.
Free ROAS Calculator
Calculate Return on Ad Spend, break-even, and target ROAS instantly
A ROAS calculator measures the revenue your ads return for every dollar spent. Enter your ad spend, attributed revenue, and gross margin to see ROAS, break-even ROAS, target ROAS, and total profit, plus how your campaign stacks up against channel benchmarks.
ROAS calculatorReturn on ad spend calculatorBreak-even ROASTarget ROAS calculator
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Enter your campaign numbers
All calculations update instantly as you type. Use whole dollars or include cents - it does not matter.
Quick formulas
ROAS = Revenue / Ad Spend
Break-Even ROAS = 1 / Gross Margin
Target ROAS = 1 / (Margin - Target Profit Margin)
Profit = Revenue x Margin - Ad Spend
ROAS by channel - industry benchmarks
Reference benchmarks for ecommerce advertisers. Use these as a sanity check, not a hard target - your margin and AOV matter more than the channel average.
| Channel | Average ROAS | As percent | Notes |
|---|---|---|---|
| Meta (Facebook / Instagram) | 3.71x | 371.0% | Average across DTC ecommerce on Meta Ads. |
| Google Ads | 4.40x | 440.0% | Search and Performance Max campaigns blended. |
| TikTok Ads | 2.78x | 278.0% | Reported median for ecommerce advertisers. |
| Email Marketing | 36.00x | 3600.0% | Industry-wide email ROI benchmark (DMA). |
| Display / Programmatic | 2.00x | 200.0% | Lower-intent placement, longer attribution windows. |
How to use this ROAS calculator
2
Set your gross margin
Enter your gross profit margin so the calculator can compute break-even ROAS and profit per ad dollar accurately.
3
Pick a channel preset
Choose Meta, Google, TikTok, email, or display to see how your ROAS compares against the channel's industry benchmark.
4
Read the verdict
The results panel shows ROAS ratio, break-even ROAS, target ROAS, and total profit, with a green or red indicator showing whether you are above or below break-even.
Explore more free tools
Pair the ROAS calculator with these other free Vibe Mart tools to get the full picture on pricing, margins, and fulfillment cost.
ROAS calculator FAQ
Common questions about Return on Ad Spend, break-even ROAS, target ROAS, and channel benchmarks.
What is ROAS and how is it calculated?
ROAS (Return on Ad Spend) measures revenue generated for every dollar spent on advertising. The formula is ROAS = Revenue Attributed to Ads / Ad Spend. A ROAS of 4.0 means you earn $4 in revenue for every $1 of ad spend. It is most often shown as a ratio (4.0x) or a percentage (400%).
What is a good ROAS for ecommerce?
A common rule of thumb is a 4x ROAS, but the right number depends on your gross margin. With a 30% margin you break even at roughly 3.33x ROAS, so 4x leaves modest profit. With a 50% margin you only need 2x to break even. Industry averages: Meta around 3.7x, Google Ads around 4.4x, TikTok around 2.8x, and email above 30x.
What is break-even ROAS?
Break-even ROAS is the ROAS at which ad-attributed gross profit exactly covers ad spend. The formula is Break-Even ROAS = 1 / Gross Margin. For example, a 25% gross margin needs a 4x break-even ROAS, and a 40% margin needs 2.5x. Anything above break-even is profitable on ads, anything below loses money on each sale.
How does ROAS differ from ROI?
ROAS only compares revenue to ad spend, while ROI (Return on Investment) compares profit to total investment, including cost of goods, fulfillment, and operating costs. A campaign can have a strong ROAS but a poor ROI if margins are thin. Marketers use ROAS for channel-level decisions and ROI for overall business profitability.
Why is my ROAS so low?
Low ROAS usually points to one of: weak creative or offer, audience that does not match the product, attribution gaps that under-credit ads, low average order value, or aggressive bidding on broad keywords. Start by tightening targeting, raising AOV with bundles or upsells, and verifying conversion tracking before increasing budget.
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