---
title: "ROAS Calculator"
description: "Free ROAS calculator. Work out return on ad spend from revenue and spend, the revenue a target ROAS demands, the budget it allows, and the break-even ROAS your gross margin sets. No sign-up, works in any currency."
canonical_url: "https://marxx.ai/roas-calculator"
---

# ROAS calculator. And the break-even your margin actually sets.

Four questions, one tool: the ROAS you got, the revenue a target demands, the budget that target allows, and the point at which your gross margin says the ads stop losing money. Nothing to sign up for, and it works in any currency as long as both inputs use the same one.

The calculator itself is interactive and needs a browser, but every formula and
answer it gives is written out below, so nothing here depends on running it.

## Formulas
- ROAS = revenue / ad spend
- Revenue = ROAS x ad spend
- Ad spend = revenue / ROAS
- Break-even ROAS = 1 / gross margin

## How to calculate ROAS
1. **Take the revenue the ads produced.** Use revenue from one campaign and date range, and be clear whether it is platform-reported or total blended revenue.
2. **Take the ad spend for the same period.** Use the same campaign and the same dates. Any currency works, as long as both numbers use the same one.
3. **Divide revenue by ad spend.** ROAS = revenue / ad spend. For 800,000 revenue on 200,000 spend, the ROAS is 4x.
4. **Compare it against your break-even.** Break-even ROAS is 1 divided by your gross margin. A 40% margin breaks even at 2.5x, so a 4x campaign is profitable at the gross level.

## Three things a ROAS figure will not say on its own.
### Break-even ROAS is the only benchmark that is yours
A 4x target copied from a case study means nothing without the margin behind it. At a 40% gross margin you break even at 2.5x, so 3x is profit. At a 20% margin you break even at 5x, and that same 3x is losing money on every order. Set the target from the margin, then argue about the rest.

### Blended and platform-reported ROAS are different numbers
Ads Manager credits itself for sales it influenced and sales it merely witnessed. Total revenue divided by total ad spend is the harsher figure and the one that matches the bank account. Pick one, say which it is, and do not compare last month's blended number against this month's reported one.

### ROAS falls as spend rises, and that is not a failure
The cheapest demand gets bought first. Pushing budget past it always drags the average down, so a scaling account with a flat ROAS is usually an account that has stopped scaling. Judge a budget increase on the profit it added, not on whether the ratio held.

## ROAS, answered.
### What is ROAS?
ROAS stands for return on ad spend: the revenue an advertising campaign produced divided by what it cost to run. A ROAS of 4 means every 1 spent on ads returned 4 in revenue. It measures revenue, not profit, which is why it has to be read against your gross margin.

### How do you calculate ROAS?
Divide the revenue attributed to your ads by the ad spend that produced it. ROAS = revenue / ad spend. For 800,000 in revenue on 200,000 of spend, the ROAS is 4, usually written 4x.

### What is a good ROAS?
The only universal answer is: above your break-even. Break-even ROAS is 1 divided by your gross margin, so a 40% margin breaks even at 2.5x and a 20% margin at 5x. Anything above that adds gross profit, though it still has to cover fixed costs before the business is ahead. Benchmarks from other people's businesses carry other people's margins.

### How do I calculate break-even ROAS?
Divide 1 by your gross margin. Break-even ROAS = 1 / gross margin, so a 40% gross margin gives 1 / 0.4 = 2.5x. Use gross margin after cost of goods, shipping and payment fees, not your retail markup.

### What is the difference between ROAS and ACoS?
They are the same fact stated in opposite directions. ACoS is ad spend as a percentage of revenue, ROAS is revenue as a multiple of ad spend, and each is the other inverted: a 4x ROAS is a 25% ACoS. Marketplaces such as Amazon report ACoS, paid social reports ROAS.

### ROAS or MER: which should I track?
Both, for different jobs. ROAS on a campaign tells you whether that campaign is worth its budget. MER, total revenue divided by total marketing spend, tells you whether the business is actually growing, and it does not care how the platforms attribute. Optimise on ROAS, take decisions on MER.

### Why does my ROAS drop when I increase the budget?
Because the cheapest demand is bought first. Extra budget reaches people who were less ready, so the average return falls even when the additional spend is still profitable. The question to ask is whether the extra spend cleared break-even, not whether the ratio stayed where it was.

## Why Marxx publishes this
Marxx rolls spend, revenue and cost per result up by hook, format and angle instead of by ad ID, so the reason a number changed survives into the next round, and every finding opens as a storyboard you can publish.

[Open the calculator](https://marxx.ai/roas-calculator) - [Book a demo](https://marxx.ai/book-a-demo)