ROAS Calculator

Worked example

You spend $2,000 on a Google Ads campaign in March. Orders traced to those ads total $7,400.

ROAS = 7,400 ÷ 2,000 = 3.7x — you get $3.70 back for every $1 spent.

If your product margin is 30%, break-even ROAS is 1 ÷ 0.30 = 3.33x. At 3.7x you are above break-even: roughly $7,400 × 30% − $2,000 = $220 profit. Healthy, but not much room for error — which is exactly why the margin mode matters.

Reading your result

• Below 1x. You are spending more on ads than the revenue they bring back. Pause or restructure before scaling.
• At break-even. Ads pay for themselves but contribute nothing toward overheads or profit.
• Above break-even. Profitable. How far above determines whether scaling budget makes sense.
• Far above break-even. Often a sign of under-investment — profitable campaigns can usually absorb more budget.

Using ROAS responsibly

ROAS is a steering metric, not a truth metric. Three habits keep it honest:

• Match the windows. Revenue and spend must cover the same date range and attribution settings.
• Watch the margin side. A rising ROAS with falling margin (discount codes, free shipping) can still shrink profit.
• Judge channels separately. Blended ROAS hides whether paid search funds itself while social drags.