ROAS & Break-even ROAS Calculator
Turn ad spend and revenue into ROAS, and the ROAS you actually need to break even.
Profitable, your 5.00× ROAS clears the 1.67× you need to break even at 60% margin.
Ook bekend als “ROAS berekenen” of “ROAS berekening”, vul hierboven uw omzet, advertentiekosten en marge in.
About this calculator
ROAS on its own is a vanity number, a 4x ROAS can be a great campaign or a losing one depending entirely on your margin. This calculator pairs the ROAS you're actually getting with the break-even ROAS your gross margin requires, so "is this campaign profitable" has a real answer instead of a gut-feel one.
How to use it
- Enter the revenue a campaign or channel generated, and the ad spend that produced it.
- Enter your gross margin, the percentage of revenue left after cost of goods sold, before ad spend.
- ROAS and ACOS come from revenue and spend directly. Break-even ROAS and estimated gross profit come from margin.
- Compare your ROAS to the break-even line: above it, the campaign is adding profit; below it, it's losing money even though revenue looks healthy.
Methodology
ROAS is revenue ÷ ad spend. ACOS (advertising cost of sale) is the inverse framing: spend ÷ revenue, expressed as a percentage, the metric Amazon sellers typically report.
Break-even ROAS is 1 ÷ gross margin (as a decimal). At 60% margin, break-even ROAS is 1.67x, below that, every dollar of ad-driven revenue costs more in ad spend than it returns in margin.
Estimated gross profit is revenue × margin, minus ad spend. This is the number that actually determines whether a campaign made money, ROAS alone can't tell you that without margin.
This is a single-period calculation. It doesn't account for LTV beyond the first purchase, so a campaign that looks unprofitable on ROAS alone can still be worth running if repeat purchase or subscription revenue closes the gap later.
FAQ
There's no universal good ROAS, it depends entirely on your gross margin. A 3x ROAS is excellent at 25% margin and barely break-even at 40% margin. Always compare your ROAS against your own break-even line, not an industry benchmark.
They're the same relationship inverted. ROAS = revenue ÷ spend (higher is better). ACOS = spend ÷ revenue, as a percentage (lower is better). Amazon sellers typically use ACOS, most other advertisers use ROAS.
ROAS measures revenue returned per ad dollar, not profit. If your margin is thin, most of that "returned" revenue is eaten by cost of goods before ad spend is even considered. Break-even ROAS translates margin into the ROAS threshold where ad spend stops being profitable.
Only if you fold them into the gross margin figure you enter. This calculator uses whatever margin percentage you provide, so build in returns, shipping cost, and marketplace fees before entering it for an accurate break-even line.