# ROAS Calculator – Return on Ad Spend

URL: https://speedycalculator.com/calculators/finance/roas/
Last updated: 2026-10-25

> The ROAS calculator works out the return on ad spend – revenue earned per dollar spent on advertising – the profit-based ROI, and the break-even ROAS your margin requires.

## Inputs

- Ad spend
- Revenue from ads
- Profit margin (before ad spend) (%)

## Results

- ROAS
- ROAS as a percentage
- ROI (on profit)
- Break-even ROAS
- Profit after ad spend

## Formula

```
ROAS = ad revenue ÷ ad spend
ROI = (revenue × profit margin − ad spend) ÷ ad spend
Break-even ROAS = 1 ÷ profit margin
```

## Explanation

ROAS measures how much revenue each advertising dollar brings in, but not profit. A 4:1 ROAS sounds good, yet with a 20% margin it only breaks even. Compare your ROAS with the break-even ROAS for your margin.

### How to use the ROAS Calculator – Return on Ad Spend

- **Ad spend**
- **Revenue from ads**
- **Profit margin (before ad spend)**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the ad spend, the revenue attributed to the ads and your profit margin before ad costs.

### Tips

- Use figures for the same period (a month, a quarter or a year) for every input so ratios compare like with like.
- Track the metric over time – the trend usually tells you more than a single value.
- Compare your result with industry benchmarks, which vary a lot between sectors.
- Treat the result as a starting point for a decision, then check the assumptions behind each input.

### Common mistakes to avoid

- Mixing monthly and yearly numbers in the same calculation.
- Using revenue where the formula needs profit (or the other way round).
- Forgetting hidden costs such as taxes, fees, overheads or your own time.

### Inputs explained

FieldWhat to enterAd spendAmount in your currencyRevenue from adsAmount in your currencyProfit margin (before ad spend)In %

### What each result means

- **ROAS** = [Revenue from ads]÷[Ad spend]
- **ROAS as a percentage** = [Revenue from ads]÷[Ad spend]×100
- **ROI (on profit)** = ([Revenue from ads]×[Profit margin (before ad spend)]÷100 - [Ad spend])÷[Ad spend]×100
- **Break-even ROAS** = 100÷[Profit margin (before ad spend)]
- **Profit after ad spend** = [Revenue from ads]×[Profit margin (before ad spend)]÷100 - [Ad spend]

### Example values

How the main result changes when **Ad spend** changes and everything else stays at the example values above:

Ad spendROAS (: 1)2,5008.83,7505.875,0004.46,2503.527,5002.9310,0002.2

## Worked example

Inputs — Ad spend: $5,000; Revenue from ads: $22,000; Profit margin (before ad spend): 30 %.

Results — **ROAS = 4.4 : 1**; ROAS as a percentage = 440 %; ROI (on profit) = 32 %; Break-even ROAS = 3.33 : 1; Profit after ad spend = $1,600.00.

## FAQ

**What is a good ROAS?**
Above your break-even ROAS; 4:1 is a common benchmark.

**What is the difference between ROAS and ROI?**
ROAS uses revenue; ROI uses profit after costs.

**How do I find my break-even ROAS?**
Divide 1 by your profit margin: 25% margin → 4:1.

**What formula does the ROAS Calculator – Return on Ad Spend use?**
ROAS = ad revenue ÷ ad spend.