Free Tool · Paid Ads
ROAS Calculator: is your ad spend actually making money?
A high ROAS looks great until you factor in your profit margin. Enter your numbers below to see your true return on ad spend, your ACOS, and the break-even ROAS you need to hit before ads start making you money.
ROAS is revenue divided by ad spend. But a 3x ROAS on a 25% margin product means you're barely breaking even, that's why the break-even line matters more than the headline number.
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Frequently asked questions
What is a good ROAS?
It depends entirely on your profit margin. A common rule of thumb is a ROAS of 3-4x for ecommerce, but a business with 60% margins can be profitable at 2x while a business with 20% margins loses money at 4x. Always compare your ROAS to your break-even ROAS.
What is the difference between ROAS and ACOS?
ROAS (return on ad spend) is revenue divided by spend, expressed as a multiple like 4x. ACOS (advertising cost of sale) is the inverse, spend divided by revenue, expressed as a percentage. A 4x ROAS equals a 25% ACOS.
What is break-even ROAS?
Break-even ROAS is 1 divided by your gross profit margin. If your margin is 40% (0.4), your break-even ROAS is 2.5x, meaning you must earn at least AED 2.50 for every AED 1 of ad spend just to cover product costs, before you make any profit.
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