ROAS Calculator
Return on ad spend is one division: revenue divided by ad spend. This page does that division and writes the substituted arithmetic beside the answer, so $48,600 of revenue on $9,000 of ad spend reads 5.40x with 540% and the fraction it came from under it. Type a contribution margin and it adds the break-even multiple, one divided by that margin, so 25% gives 4.00x, together with the two amounts that sit at it: $12,150.00 of ad spend against the same revenue, and $36,000.00 of revenue against the same ad spend. An ad spend of 0 is refused rather than turned into an endless multiple, the currency mark you type is carried through every figure, and a rounded multiple prints the exact fraction beside it. No account, nothing gated, and the numbers stay in your browser.
$48,600.00 / $9,000.00 = 5.40x, which is 540%. For every $1.00 of ad spend there was $5.40 of the revenue you entered. At a 25% contribution margin, break-even is 1 / 25% = 4.00x, counting only the ad spend and the margin you entered. The same $48,600.00 of revenue sits at that multiple with $12,150.00 of ad spend, and the same $9,000.00 of ad spend sits at it with $36,000.00 of revenue.
5.40x is 1.40x above the 4.00x break-even.
ROAS is not profit. It divides revenue by one cost, the ad spend, and knows nothing about the cost of the goods, the fees, the shipping or the overhead. It also does not say the ads produced the revenue: it is the two numbers you entered, one over the other, for whatever period you entered them. The break-even multiple beside it is one divided by the contribution margin you type, so it counts only that margin and the ad spend, and it moves when you change the margin rather than when the campaign changes. What the page gives you is the arithmetic, checkable on the screen, and no view about what any of it is worth.
Common questions
- How do you calculate ROAS?
- Divide the revenue by the ad spend. $48,600 of revenue on $9,000 of ad spend is 5.40x, and the same number as a percentage is 540%. The page prints that substituted division under the figure, so the answer can be checked rather than trusted, and it says in plain terms what the multiple means: for every $1.00 of ad spend there was $5.40 of the revenue you entered. Where a multiple does not land on two decimal places, it is shown rounded with the exact fraction printed next to it.
- What is break-even ROAS and how is it worked out here?
- Break-even ROAS is one divided by your contribution margin, so a 25% margin breaks even at 4.00x and a 50% margin at 2.00x. Type the margin into the Margin box and the page adds that multiple, the arithmetic behind it, and the distance between it and the campaign above. It also turns it back into money: at a 25% margin, $48,600 of revenue sits at break-even with $12,150.00 of ad spend, and $9,000 of ad spend sits at break-even with $36,000.00 of revenue. The figure counts only the margin and the ad spend you entered, and it moves only when you change that margin.
- Is ROAS the same as profit, or the same as ROI?
- No. ROAS divides revenue by one cost, the ad spend, so it knows nothing about the cost of the goods, the fees, the shipping or the overhead, and a 5.40x campaign can sit on either side of break-even depending on a margin the number never sees. Return on investment subtracts costs before dividing and answers a different question. This page reports the ratio you asked for and the break-even multiple your own margin implies, and it makes no claim about what either is worth.
- Why does an ad spend of 0 give an error instead of a number?
- Because there is no denominator. Dividing by zero has no answer, and printing an infinite multiple would look like a result. The page names that case and says what to enter instead, and what you typed stays in the boxes while you fix it. The same applies to a contribution margin of 0, which has no break-even point at all: that one is refused on its own, without taking the ROAS above it away.
- What is ad spend as a share of revenue?
- It is the same two numbers the other way round: $9,000 of ad spend against $48,600 of revenue is 18.52%, which is what Amazon reporting calls advertising cost of sale, or ACOS. The page prints it as the third row, with the fraction it came from, because a share of revenue and a multiple of spend are two readings of one division and people often need the other one.
- Can I use euros, pounds or any other currency?
- Yes. Type the mark with either amount, before the number or after it, and it is carried through every figure on the page: none is invented when you leave it out. A ROAS is a ratio, so the currency cancels out and the multiple is the same whatever you enter. Two different marks in the two boxes are refused by name, because a ratio between two currencies is not a ROAS. Amounts are taken to two decimal places and up to 1,000,000,000.
- Do my numbers leave the browser?
- No. The division happens in the page itself, with no upload, no account and no sign-up. What you last typed is kept in this browser so the page opens where you left it, and the Start over button at the top of the page forgets it. The site counts that this tool was opened and nothing else: not your revenue, not your ad spend, and not any figure on the page.
Exact arithmetic: return on ad spend is revenue divided by ad spend, shown as a multiple and as a percentage. The break-even figure is one divided by the contribution margin you enter, and it counts only the costs you entered. It is not profit, it attributes no revenue to any channel, and it is not advice about what to spend.