Free tool · 2026

ROAS Calculator

Enter your numbers below. The calculator tells you your actual ROAS, your break-even ROAS, your target ROAS, and whether your campaign is scaling profitably or quietly burning budget.

Your numbers

Update any field — results recalculate as you type.

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$
%
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Your ROAS

4.00×
Scaling profitably
Break-even ROAS
1.67
Below this, you lose money on COGS
Target ROAS
2.08
To hit your target profit margin
Gross profit
$60.0K
Revenue × Gross margin
Net profit
$35.0K
Gross profit − ad spend
Your ROAS is 92% above target. Every additional dollar of spend at this ROAS generates your target profit margin or better — this is the healthy scaling zone.

How the math works

ROAS

ROAS = Revenue ÷ Ad Spend

The simple ratio. A ROAS of 4.0 means $4 of revenue for every $1 of spend.

Break-even ROAS

Break-even ROAS = 1 ÷ Gross Margin

Below this number, every additional dollar of ad spend loses money after COGS. A 60%-margin brand breaks even at ROAS 1.67; a 30%-margin retailer needs ROAS 3.33 just to break even on the products themselves.

Target ROAS

Target ROAS = Break-even ÷ (1 − Target Profit Margin)

The ROAS you actually want to hit if you also want to generate a specific net profit margin (not just break even). At your target ROAS, every dollar spent generates your desired profit on top of COGS recovery.

Want to go deeper? Read The Complete ROAS Guide 2026 — 18-minute long read covering benchmarks, pitfalls, POAS vs ROAS, AI-era attribution, and our 4-step operating loop.

Frequently asked

›What is ROAS and how is it calculated?

ROAS (Return on Ad Spend) is the ratio of revenue generated to advertising spend. The formula is ROAS = Revenue ÷ Ad Spend. A ROAS of 4.0 means $4 of revenue for every $1 spent on ads. Sometimes expressed as a percentage (400%) or a ratio (4:1).

›What is a good ROAS?

It depends on your gross margin and desired profit. Break-even ROAS = 1 ÷ Gross Margin. A 70% gross-margin DTC brand breaks even at ROAS 1.43, with 2.0+ typically being profitable. A 30% margin retailer needs ROAS 3.33 just to break even on COGS. Use this calculator to find your specific target.

›What's the difference between break-even ROAS and target ROAS?

Break-even ROAS is the minimum ROAS where you stop losing money — your revenue covers COGS exactly. Target ROAS is break-even plus your desired profit margin. If your break-even is 2.0 and you want 20% net profit on ad-acquired customers, your target ROAS climbs to roughly 2.5.

›Should I use ROAS or POAS (Profit on Ad Spend)?

ROAS is faster to calculate and reported by every ad platform. POAS (Profit on Ad Spend) replaces revenue with gross profit in the numerator, which is more honest for mixed-margin businesses but requires SKU-level margin data. Use ROAS for daily campaign decisions and POAS for monthly budget allocation.

›Can I save and share my calculation?

Yes. The calculator updates the URL as you type, so you can bookmark or share the URL to send the exact scenario to a colleague. The numbers are encoded in the URL parameters — no account or login required.

›Does this calculator work for SaaS companies?

Yes, but with a caveat. SaaS ROAS based on first-month revenue will always look terrible because the LTV unlocks over many months. For SaaS, calculate ROAS based on expected LTV (annual contract value × expected retention), not first-month MRR. Or use the simpler approach: calculate CAC payback period (= 1 ÷ ROAS × payback months) and target a 6–18 month payback for B2B SaaS.

Stop calculating ROAS in spreadsheets.

Floowzy calculates cross-platform ROAS automatically, every day, across Meta, Google, TikTok, Snap, and X. Free tier, no credit card.

Start free with Floowzy →Read the ROAS guide