Depends entirely on margin. E-commerce at thin margins often needs 3-4x to profit; high-margin SaaS can be happy at 2x when factoring lifetime value. The only universal number is your break-even ROAS: 1 ÷ gross margin.

ROAS vs ROI — what's the difference?

ROAS compares revenue to ad spend only (revenue ÷ spend). ROI compares profit to total cost ((profit − cost) ÷ cost). ROAS is the media-buying dial; ROI is whether the business works.

Does this calculator send my numbers anywhere?

No. Calculator tools on this site run entirely in your browser — nothing you type here touches a server or gets stored.

Why is this free — what's the catch?

No catch and no signup. This tool is funded by EaseClaw, an AI agent that finds people publicly asking for what you sell and drafts your replies. If the free tool is useful, some people try the $9 trial. That's the whole business model.

ROAS Calculator

Return on ad spend — and the break-even number your margin actually requires.

ROAS is revenue attributable to ads divided by what you spent on them: $12,000 from $4,000 of ads is a 3.0x ROAS. It's the standard dial for judging campaigns — and the most misread number in paid marketing, because revenue isn't profit. The number everyone forgets is break-even ROAS: with a 60% gross margin you need at least 1.67x just to not lose money, before a single overhead dollar. Enter your margin below and this calculator does both, so “we're at 3x” stops being reflexively celebrated and starts being compared to the number that matters.

How to read your ROAS (and not fool yourself)

Compute break-even first: 1 ÷ gross margin. At 50% margin, break-even ROAS is 2.0x; at 30%, it's 3.33x. Any campaign below your break-even is buying revenue with your own money.
Match the revenue window to the spend window. Comparing this month's spend to revenue that includes last month's late conversions flatters the number — use the same attribution window on both sides.
Watch marginal ROAS, not just the average. The first $1,000 of spend usually buys your cheapest customers; the next $1,000 buys pricier ones. Scale until marginal ROAS approaches break-even, not until the average looks bad.
Include what the platform can't see. If phone orders or long sales cycles convert off-platform, your true ROAS is higher than reported — and the reverse if returns and refunds are heavy in your category.
Judge campaigns on contribution, not ratio. A 2.5x campaign spending $50k can add more gross profit than a 6x campaign spending $2k. The ratio picks winners; absolute contribution pays rent.

Example output

Revenue / spend / margin: Revenue from ads: $12,000 · Ad spend: $4,000 · Gross margin: 60%

ROAS: 3.00x (300%)
Every $1 of ads returned $3.00 in revenue.

Break-even ROAS at 60% gross margin: 1.67x
You're above break-even — these ads contributed about $3,200 in gross profit ($12,000 × 60% − $4,000).

Frequently asked questions

What's a good ROAS?: Depends entirely on margin. E-commerce at thin margins often needs 3-4x to profit; high-margin SaaS can be happy at 2x when factoring lifetime value. The only universal number is your break-even ROAS: 1 ÷ gross margin.
ROAS vs ROI — what's the difference?: ROAS compares revenue to ad spend only (revenue ÷ spend). ROI compares profit to total cost ((profit − cost) ÷ cost). ROAS is the media-buying dial; ROI is whether the business works.
Does this calculator send my numbers anywhere?: No. Calculator tools on this site run entirely in your browser — nothing you type here touches a server or gets stored.
Why is this free — what's the catch?: No catch and no signup. This tool is funded by EaseClaw, an AI agent that finds people publicly asking for what you sell and drafts your replies. If the free tool is useful, some people try the $9 trial. That's the whole business model.

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