ROAS Calculator
Calculate your Return on Ad Spend instantly. Determine break-even ROAS and evaluate if your advertising campaigns are profitable.
Enter Your Data
Total amount spent on advertising
Revenue generated from advertising
Your profit margin to calculate break-even ROAS
Results
ROAS Benchmarks
Losing money on ads
Covering costs only
Healthy profitability
Outstanding performance
What is ROAS?
Return on Ad Spend (ROAS) is a marketing metric that measures the revenue generated for every pound spent on advertising. It helps businesses evaluate the effectiveness of their advertising campaigns and make data-driven decisions about their marketing budget.
How to Calculate ROAS and Break-even ROAS
Calculating ROAS
Step-by-step:
- Identify the total revenue generated from your ad campaign
- Determine the total cost spent on that campaign
- Divide the revenue by the cost
- Multiply by 100 to get the percentage
Example:
If you spent £1,000 on Facebook ads and generated £4,500 in revenue:
ROAS = (£4,500 ÷ £1,000) × 100 = 450%
This means for every £1 spent, you earned £4.50 in revenue.
Calculating Break-even ROAS
Break-even ROAS tells you the minimum return needed to cover your costs without making a profit or loss. It accounts for your profit margin on products/services sold.
Step-by-step:
- Calculate your profit margin as a decimal (e.g., 25% = 0.25)
- Divide 1 by your profit margin
- Multiply by 100 to get the percentage
Example:
If your profit margin is 25%:
Break-even ROAS = (1 ÷ 0.25) × 100 = 400%
You need at least 400% ROAS to cover all costs. Anything above 400% is profit.
Common Break-even ROAS by Profit Margin
Frequently Asked Questions
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