ROAS Calculator

Work out your return on ad spend, then find the break-even ROAS and max CPA your margins allow.

Your numbers

Your result

ROAS
3.00x
Every $1 spent on ads brought back $3.00 in revenue (300%).

Break-even ROAS calculator

Your numbers

Your results

Break-even ROAS
1.67x

You need at least 1.67x return on ad spend to break even. Anything above is profit.

Profit margin
60%
Before ad spend
Max CPA
$30.00
Most you can pay per sale

Hitting your target ROAS comes down to better creatives. Loore learns what's already working in your account and generates winning ad variations on autopilot.

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What is ROAS?

ROAS, or return on ad spend, is how much revenue your ads bring in for every dollar you spend on them. A 3x ROAS means $3 of revenue for every $1 of ad spend. Meta Ads Manager reports it as "purchase ROAS", based on the purchases it attributes to your ads.

ROAS measures revenue, not profit. A 3x ROAS can make money for one business and lose money for another, depending on margins. That is why this page has two calculators: the first gives your ROAS, the second tells you the ROAS you need.

The ROAS formula

ROAS = revenue from ads ÷ ad spend
ROAS as a percentage = revenue ÷ ad spend × 100

Rearranged, the same formula plans a campaign: revenue = ROAS × ad spend, and ad spend = revenue ÷ ROAS. The "Find revenue from ads" and "Find ad spend" buttons above do that for you.

How to calculate ROAS: worked example

Your ads brought in $3,000 in sales and you spent $1,000 on them.

$3,000 ÷ $1,000 = 3.0x ROAS (300%)

Planning: if you need $10,000 in ad revenue and your campaigns usually return 2.5x, budget about $10,000 ÷ 2.5 = $4,000 in ad spend.

What is break-even ROAS?

Break-even ROAS is the ROAS at which your ads pay for themselves and nothing more: no profit, no loss. It comes from your margin, the share of each sale left after product and other costs.

Break-even ROAS = selling price ÷ (selling price − product cost − other costs)
Break-even ROAS = 1 ÷ profit margin
Example: $50 price, $15 product, $5 other costs
$50 ÷ $30 = 1.67x break-even ROAS
  • 20% margin: 5.00x break-even ROAS
  • 25% margin: 4.00x
  • 33% margin: 3.00x
  • 40% margin: 2.50x
  • 50% margin: 2.00x
  • 60% margin: 1.67x
  • 75% margin: 1.33x

The lower your margin, the higher the ROAS you need. The profit margin calculator helps you get the margin right first.

Max CPA from break-even ROAS

The same numbers give your maximum cost per acquisition: the profit per sale before ad spend. In the example above it is $50 − $15 − $5 = $30. Pay more than $30 in ads for a sale and you lose money on it. Compare it with your real cost per sale in the CPA calculator.

ROAS vs ROI

ROAS compares revenue with ad spend. ROI compares profit with everything you spent. Take a 3x ROAS on a 40% margin:

Revenue $3,000, ad spend $1,000
Gross profit before ads: $3,000 × 40% = $1,200
Profit after ads: $1,200 − $1,000 = $200
ROI: $200 ÷ $1,000 = 20%

A healthy-looking 3x ROAS is only a 20% return once costs are in. Work out your full return with the ROI calculator.

ROAS vs MER (blended ROAS)

The ROAS in Ads Manager counts only the sales Meta attributes to your ads, by default within 7 days of a click or 1 day of a view. Other platforms count with their own rules, so the same sale can be claimed twice, and some sales are claimed by nobody.

MER (marketing efficiency ratio), also called blended ROAS, avoids that: total revenue divided by total ad spend across every channel. Use platform ROAS to compare campaigns and ads inside one platform, and MER to check that the business as a whole is profitable.

What is a good ROAS?

A good ROAS is one comfortably above your break-even ROAS. There is no universal target, because it depends on your margin, and on whether customers buy again: if they do, you can accept a lower ROAS on the first order and earn the rest later. The LTV calculator shows how much a repeat customer is worth.

ROAS below break-even? What to check

  • Your costs: shipping, payment fees and returns often push the real break-even higher than expected.
  • Your creative: a weak hook lowers CTR, which raises the cost of every sale.
  • Your landing page: a low conversion rate wastes good clicks.
  • Your order value: bundles and offers raise revenue per sale, and ROAS with it.
  • Your ad sets: cut the ones that stay below break-even after they have had enough spend to judge.

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Frequently asked questions

How do you calculate ROAS?
Divide the revenue from your ads by your ad spend. $3,000 in sales from $1,000 in ads is a 3x ROAS, or 300%.
What is break-even ROAS?
The ROAS at which revenue exactly covers your product, other and ad costs, with no profit and no loss. It equals 1 ÷ your profit margin, so a 40% margin means a 2.5x break-even ROAS.
What is a good ROAS?
Any ROAS comfortably above your break-even point. High-margin products can be profitable at 2x, while low-margin products may need 4x or more. If customers buy again, a lower first-order ROAS can still pay off.
Is ROAS a percentage or a ratio?
Both are used. 3x and 300% mean the same thing: $3 of revenue for every $1 of ad spend.
What is the difference between ROAS and ROI?
ROAS compares revenue with ad spend. ROI compares profit with total cost. A 3x ROAS on a 40% margin is only a 20% ROI once product costs are counted.
What is max CPA?
The most you can pay in ads to win one sale and still break even. It equals your profit per sale before ad spend: selling price minus product and other costs.