ROAS calculator

1. Pick what to work out. ROAS takes revenue and ad spend. Revenue needed tells you the sales a target ROAS requires on a given budget. Max ad spend tells you the most you can spend on a revenue figure and still hit your target.
2. Enter numbers that match. Take revenue and spend from the same campaigns, the same dates and the same attribution setting. Mixing a 7-day report with a 28-day one gives a ROAS that means nothing.
3. Add your gross margin (optional). The calculator then shows your break-even ROAS, the profit left after product costs and ads, and whether you are above or below break-even.
4. Choose your currency and copy the result. ROAS is a ratio, so it is the same in every currency. The currency only changes how revenue and spend are shown.

The result updates as you type, and the formula box shows the maths with your own numbers so you can check it or paste it into a report.

ROAS = revenue from ads ÷ ad spend

Example. A clothing brand spends $1,000 on ads in a month, and its ads manager reports $4,000 in purchase value from those ads. ROAS = $4,000 ÷ $1,000 = 4. You can write that as 4x, 4:1 or 400%. All three mean $4 in revenue for every $1 of ad spend.

To show ROAS as a percentage, multiply by 100: a ROAS of 2.5 is 250%.

Working backwards from a target

• Revenue needed = ad spend × target ROAS. On a $2,500 budget with a 3x target you need $7,500 in ad revenue.
• Max ad spend = revenue ÷ target ROAS. If you expect $12,000 in ad revenue and want a 4x ROAS, you can spend up to $3,000.

ROAS and ACoS

Marketplaces often report ACoS (advertising cost of sales) instead. It is the same relationship turned upside down: ACoS = ad spend ÷ ad revenue × 100, so ACoS = 100 ÷ ROAS.

A good ROAS is one above your break-even ROAS, and that number comes from your margin, not from an industry average. Revenue is not profit: a 3x ROAS on a product with a 25% margin loses money, while a 2x ROAS on a 60% margin makes money.

Break-even ROAS = 1 ÷ profit margin

So is a 2.5 ROAS good? At a 40% margin it only breaks even. At 60% it is profitable. At 30% it loses money. Use the break-even ROAS calculator to include shipping, payment fees and other per-order costs.

Beyond margin, what counts as a good ROAS depends on:

• Attribution. A longer attribution window, or counting view-through conversions, credits more sales to the ads and raises reported ROAS.
• Prospecting or retargeting. Retargeting reaches people who were already close to buying, so it usually reports a higher ROAS than ads to new audiences.
• Repeat purchases. If customers come back to buy again, a first-order ROAS near break-even can still pay off over time.
• Fixed costs. Break-even ROAS covers the cost of each order. Salaries, rent and software still have to be paid from what is left.

Platform ROAS also tends to double count, because each ad platform claims the sales it touched. Check it against your store's total revenue with the MER calculator.

• Raise the order value. Bundles, multi-buy offers and a free-shipping threshold add revenue to each conversion without adding ad cost.
• Fix the landing page before buying more traffic. A slow page, or one that does not match what the ad promised, loses buyers you already paid to reach. See the conversion rate calculator.
• Refresh creative before it wears out. When the same people see an ad many times, click-through rate falls and ROAS follows. Launch the next version while the current one still works.
• Move budget to what is working. Shift spend toward ad sets and ads above your target, and cut those below break-even once they have enough data to judge.
• Check tracking. If purchase values do not reach the ad platform, ROAS reads low even when sales are fine, and the platform optimizes on bad data.
• Judge on settled data. Conversions keep arriving for days after a click, so yesterday's ROAS usually rises. Decide on complete days, not today's partial numbers.

Ad Autopilot is CamClo AI's AI media buyer for Meta and Google Ads, and ROAS is one of the numbers it plans and judges campaigns on.

• Targets from your margin. When you plan a campaign you enter your average order value and gross margin. Ad Autopilot calculates break-even ROAS as 1 ÷ margin in code, not by guessing with the AI model, and recommends a target ROAS 1.3 times higher so there is room for day-to-day swings. You can edit the target. If you also give fulfilment, payment fee, discount and return rates, it prices the targets on the margin you actually keep.
• Judged on settled days. The agent compares purchase campaigns with your target ROAS on days whose conversions have finished arriving. A day with results but no reported revenue counts as unknown, not as a loss.
• A stop that waits for you. If a campaign runs at half your target ROAS or less for 3 settled days in a row (you can change the number of days), the agent can propose stopping it. That proposal always waits for your approval.
• A weekly check. The weekly email digest shows blended ROAS across your purchase campaigns and marks each campaign as on target, below its ROAS target or over its CPA cap.