Enter the revenue your ads generated and what you spent on them. Add your gross margin to see your break-even ROAS and how much profit is left after advertising costs. This is the same check we run before recommending that a client scale a campaign.
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How ROAS is calculated
ROAS = revenue from ads ÷ ad spend. If you spent 3,000 and the ads brought in 12,000 of tracked revenue, your ROAS is 4.0x, or 400%.
Break-even ROAS matters more than ROAS
Break-even ROAS = 1 ÷ gross margin. A store with a 40% margin breaks even at 2.5x; a store with a 20% margin needs 5x just to stop losing money. This is why two businesses with the same 4x ROAS can be in completely different positions, and why a single “good ROAS” number does not exist.
ROAS also ignores agency fees, staff time and repeat purchases. For subscription or repeat-purchase businesses, judge campaigns on customer lifetime value, not on the first order alone.
Frequently asked questions
What is a good ROAS?
One that is comfortably above your break-even ROAS. Calculate break-even from your margin first; any benchmark that ignores margin is not useful for your business.
What is the difference between ROAS and ROI?
ROAS compares revenue with ad spend only. ROI compares profit with all costs, including product cost and fees, so it is always the stricter number.
Why does Google Ads show a different ROAS than my store?
Attribution windows, view-through conversions, taxes and shipping in conversion values, and returns all cause gaps. Compare both sources over the same date range and decide which one you trust for decisions.