ROAS Calculator: Is Your Ad Spend Paying Off?

Free ROAS calculator by Tausif Khan, Digital Marketing Trainer. Last updated: October 2026.

What is ROAS?

ROAS formula

ROAS = Revenue from ads ÷ Ad spend

Divide the revenue your ads brought in by what you spent on them. The result is written as a multiple, such as 3x or 4x. The ROAS calculator above does this for you and also works out your break-even point.

Worked example: a coaching institute

1. You spent ₹10,000 on ads in a month.
2. Those ads brought in ₹40,000 of course fees, so ROAS = 40,000 ÷ 10,000 = 4x.
3. Your profit margin is 30%, so you keep ₹30 of every ₹100 in sales. Break-even ROAS = 100 ÷ 30 = 3.33x.
4. Profit after ads = 40,000 × 30% − 10,000 = ₹2,000. Since 4x is above 3.33x, the campaign made money.

Proof: ₹40,000 of sales at 30% margin gives ₹12,000 of gross profit. Take away ₹10,000 of ad spend and ₹2,000 is left.

How to use this ROAS calculator

1. Enter the total ad spend for the period. Use the same period for spend and revenue, such as the last 30 days.
2. Enter the revenue from those ads. In Google Ads or Meta Ads, use the conversion value column.
3. Optional: enter your profit margin to see break-even ROAS and your profit or loss.
4. Read your ROAS in the blue box. If it is below break-even, the campaign is losing money even if the ROAS number looks good.

Break-even ROAS: the number that matters

Break-even ROAS is the lowest ROAS at which your ads stop losing money. It depends only on your profit margin, using this formula: Break-even ROAS = 100 ÷ profit margin %. A business with a 20% margin needs at least 5x to break even. A business with a 50% margin only needs 2x. So a 3x ROAS can be a good result for one business and a loss for another.

What is a good ROAS?

There is no single good ROAS for every business. A ROAS of 4x can be strong for a low-margin store and weak for a high-margin service. Compare your ROAS with your own break-even point and with your past campaigns, not with a number you read in a blog post. Industry averages change a lot by country, product and platform, so use them only as a rough guide.

Common ROAS mistakes

• Judging by ROAS alone. A high ROAS on a low-margin product can still lose money. Always check break-even.
• Using revenue instead of profit. Break-even depends on what you keep, not on the total sales figure.
• Mixing time periods. Ad spend and revenue must come from the same dates, or the ROAS will be wrong.
• Ignoring attribution. Platforms count conversions in different ways. Compare numbers from the same source.

Frequently asked questions

How do I calculate ROAS?

Divide your revenue from ads by your ad spend. If you earned ₹50,000 from ₹10,000 of ads, ROAS = 50,000 ÷ 10,000 = 5x.

What is the difference between ROAS and ROI?

ROAS compares revenue with ad spend. ROI compares profit with the total investment. ROAS is quick to check for ad campaigns, while ROI gives a fuller picture of whether the business is profitable.

What is break-even ROAS?

It is the lowest ROAS where your ads cover their cost. Divide 100 by your profit margin percentage. For example, a 25% margin gives a break-even ROAS of 4x.

Is a 2x ROAS bad?

Not always. If your profit margin is above 50%, a 2x ROAS can break even or better. If your margin is 20%, a 2x ROAS means you are losing money on every sale.

Can I use this ROAS calculator for Meta Ads or Google Ads?

Yes. The formula works for any platform. Just make sure you use the revenue value that the platform reports for the same campaign and date range as your spend.

Is this ROAS calculator free?

Yes. It is free. You create a one-time account with your Google email, and after that you can use the calculator as many times as you like. The numbers you type into the calculator itself are not stored.