ROAS CALCULATOR

How do you calculate ROAS?

Calculate your return on ad spend in seconds. Enter your revenue and ad spend to see your ROAS, find your break-even point, and check it against what a good ROAS actually looks like.

ROAS
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Enter ad spend to calculate
Break-even ROAS
2.0x
1 ÷ 50% margin
Gross profit
$0
Revenue minus ad spend
Status
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How to calculate ROAS

ROAS stands for return on ad spend. The formula is simple: divide the revenue your ads generated by what you spent to generate it. If you made $80,000 from $20,000 in ad spend, your ROAS is 4x — four dollars back for every dollar in. You'll see it written as a ratio (4:1), a multiple (4x), or a percentage (400%). They all mean the same thing.

What is a good ROAS?

The rule of thumb people repeat is 4:1, but the honest answer is that it depends on your margins and your business model. A high-margin software company can be profitable at a far lower ROAS than a low-margin retailer. The number that actually matters is your break-even ROAS: 1 divided by your gross margin. At a 50% margin, you break even at 2x, so anything above 2x is profit. Ecommerce brands often aim for 3–4x; B2B companies with large deal sizes can win at lower multiples — the calculator above shows you your specific floor.

ROAS vs ROI

They're related but not the same. ROAS measures revenue against ad spend only. ROI measures profit against your total cost — ad spend plus everything else it took to deliver. ROAS is the faster, ad-specific gauge; ROI is the fuller picture of profitability.

Why ROAS is harder to measure in B2B

In ecommerce, the sale happens at the click and the platform records it. In B2B, your ads generate leads, not purchases — and those leads can take 3 to 9 months to close, in a CRM your ad platform never sees. A campaign can look like a total loss at 30 days and turn into your best performer by month six. That's why measuring ROAS over time matters more than any single snapshot.

If you're tracking an active campaign with open deals, you can also project ROAS before deals close using historical close rates. And for the full framework, see our full guide to B2B ROAS.

Frequently asked questions

What is ROAS?
Return on ad spend = revenue generated ÷ ad spend, shown as a ratio (e.g. 4x or 4:1). 4x means $4 of revenue per $1 spent.
How do you calculate ROAS?
ROAS = Revenue from ads ÷ Ad spend. Example: $80,000 ÷ $20,000 = 4x.
What is a good ROAS?
4:1 is a common benchmark, but "good" depends on margin and model. Ecommerce often targets 3–4x; high-margin or high-deal-value B2B can profit at lower multiples. Your true floor is your break-even ROAS.
What is break-even ROAS?
The ROAS where ad revenue covers cost: 1 ÷ gross margin. At 50% margin, break-even is 2x.
What's the difference between ROAS and ROI?
ROAS compares revenue to ad spend only; ROI compares profit to total cost. ROAS is gross and ad-specific; ROI is net and broader.
Why is ROAS harder to measure in B2B?
Long sales cycles and CRM-based revenue mean ad-driven revenue lands months later in a different system.
ROAS benchmarks vary by industry, margin, and business model. Use this tool as a directional guide, not a target. For a deeper framework, read our B2B ROAS guide.