ROAS Calculator
Free ROAS calculator for ecommerce advertisers. Instantly measure return on ad spend for Google Ads, Meta Ads, Shopping, TikTok and every DTC paid channel.
What is ROAS?
ROAS (return on ad spend) measures how much revenue every dollar of paid media generates. A 4x ROAS means $4 of attributed revenue for every $1 spent. It is the primary optimization metric for ecommerce, Shopping and DTC campaigns.
ROAS formula and example
ROAS = Revenue from Ads ÷ Ad Spend. Example: $8,000 of Shopify revenue attributed to a $2,000 Meta Ads campaign = 4.0x ROAS.
ROAS vs ROI
ROAS ignores product cost, fulfilment and agency fees — it is a media-buying metric. ROI subtracts those costs to reveal actual profit per marketing dollar. Both are essential; ROAS drives channel decisions, ROI drives budget decisions.
ROAS benchmarks by industry
- Beauty & skincare: 3x – 5x
- Apparel: 3x – 4x
- Home & furniture: 4x – 6x
- Electronics: 4x – 8x
- Subscription boxes: 1.5x – 3x (LTV-supported)
- Luxury: 6x – 10x
How to compute break-even ROAS
Break-even ROAS = 1 ÷ gross margin. A brand at 40% margin breaks even at 2.5x ROAS; a brand at 20% margin needs 5x just to cover COGS before fulfilment.
How to improve ROAS
- Raise conversion rate with better product pages.
- Lift average order value with bundles and upsells.
- Exclude low-margin SKUs from ad feeds.
- Switch to value-based bidding.
- Reduce ad frequency on saturated audiences.
ROAS and LTV
Subscription and repeat-purchase businesses should judge ROAS against LTV, not first-order revenue. A 1.5x first-order ROAS is profitable if 12-month LTV pushes true ROAS above break-even.
ROAS Calculator FAQ
What is ROAS?
Revenue from a campaign divided by ad spend, expressed as a multiple (e.g. 4x).
What is the ROAS formula?
ROAS = Revenue from Ads ÷ Ad Spend.
What is a good ROAS?
Most ecommerce brands target 3x–5x. Low-margin categories need 6x+; high-LTV subscriptions can sustain 1.5x–2x.
How is ROAS different from ROI?
ROAS measures revenue per ad dollar. ROI measures profit per invested dollar and includes COGS and overheads.
How can I improve ROAS?
Lift AOV and conversion rate, exclude unprofitable SKUs and use value-based bidding.
How do I calculate break-even ROAS?
Break-even ROAS = 1 ÷ gross margin. A 40% margin brand breaks even at 2.5x.
Should ROAS include shipping and returns?
Ideally, yes — either subtract them from revenue or track net ROAS separately.
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Open →Last updated: Q1 2026