ROAS Calculator
Return on ad spend, ACOS and profit at a glance.
How the roas calculator works
Return on ad spend is the headline number for paid acquisition, but it only tells part of the story. A 4:1 ROAS can still lose money once product cost, shipping and fees are counted.
Enter the revenue attributed to your ads and the spend behind it. The calculator returns ROAS as a ratio and a percentage, ACOS as its inverse, and gross profit before other costs.
Your break-even ROAS depends on your margins. If your product margin is 40%, you need a ROAS above 2.5:1 just to cover the cost of goods, before overhead. Use the profit tools to find the real line.
The formula
How this is calculated
ROAS is revenue divided by ad spend, expressed as a ratio. ACOS is its inverse as a percentage. Gross ad profit is revenue minus spend, before other costs.
Worked example
$40,000 revenue on $10,000 spend is a 4:1 ROAS and a 25% ACOS.
Frequently asked questions
What is a good ROAS?
It depends entirely on your margins. A store with thin margins may need a 5:1 ROAS to profit, while a high-margin brand can thrive at 2:1. Calculate your break-even ROAS from your gross margin first.
What is the difference between ROAS and ACOS?
They are inverses. ROAS is revenue divided by spend (a ratio); ACOS is spend divided by revenue (a percentage). A 4:1 ROAS is a 25% ACOS.
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