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Free ROAS calculator with break-even ROAS
Find out if your Facebook, Instagram or Google ads are really making money. Enter what you spent and what you earned, add your profit margin, and see your return on ad spend, break-even point and profit. Free, no signup, and it runs in your browser.
- ROAS, ROI and profit
- Break-even ROAS
- Cost per order
Your numbers
We filled in an example. Replace it with your own.Profit margin is the share of each sale you keep after product and delivery costs, but before ad spend. Use revenue from orders that were delivered and paid.
Your result
Updates as you type.This is an estimate based on the numbers you enter. It does not include other costs such as salaries or rent.
How to calculate ROAS
ROAS means return on ad spend. It tells you how much revenue you earned for every rupee you spent on ads.
For example, if you spend Rs 50,000 and your ads bring in Rs 200,000 in sales, your ROAS is 4. You earned Rs 4 for every Rs 1 spent. That is the number the calculator shows first.
Break-even ROAS: the number that matters
A high ROAS does not always mean profit, because revenue is not profit. You also paid for the product, packing and delivery.
In the example above, a 30% margin gives a break-even ROAS of 3.33. The ROAS of 4 is above it, so the ads make a profit: Rs 60,000 gross profit minus Rs 50,000 ad spend leaves Rs 10,000.
Break-even ROAS by margin
| Profit margin | Break-even ROAS |
|---|---|
| 10% | 10x |
| 20% | 5x |
| 25% | 4x |
| 30% | 3.33x |
| 40% | 2.5x |
| 50% | 2x |
Products with a low margin need a much higher ROAS to be worth advertising.
Mistakes that make ROAS look better than it is
- Counting orders that were later returned or refused on delivery
- Using the price instead of the real profit margin
- Leaving out the cost of creative, tools or agency fees
- Judging a campaign after only two or three days
- Trusting only the ad platform report and not your own sales records
If your numbers do not look healthy, our team can find out why. See our Google and Facebook ads service, or ask for a free ads review.
ROAS calculator questions
What is a good ROAS?
There is no single good number. It depends on your profit margin. The break-even ROAS is 1 divided by your margin. If you keep 25% of each sale after product costs, you need a ROAS of 4 just to break even, and anything above that is profit.
How do I calculate ROAS?
Divide the revenue from your ads by the money you spent on them. If you spent Rs 50,000 and the ads brought in Rs 200,000, your ROAS is 4, often written as 4x.
What is the difference between ROAS and ROI?
ROAS looks at revenue compared with ad spend. ROI looks at profit compared with ad spend, so it also takes your product costs into account. A ROAS of 4 can still lose money if your margin is low.
What is break-even ROAS?
It is the lowest ROAS at which your ads pay for themselves. Below it you lose money on every sale made through ads. Above it you make a profit.
Should I count cash on delivery returns?
Yes. In Pakistan many orders are cash on delivery and some are refused or returned. Use the revenue from orders that were actually delivered and paid, or your ROAS will look better than it really is.
Does this work for Facebook, Instagram and Google ads?
Yes. Use the spend and the sales that the platform or your own records show. For the most honest result, use your own sales records rather than only the platform report.
Is this calculator free?
Yes. It is free, needs no signup, and runs in your browser. We do not store the numbers you type.