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ROAS calculator: what every ad dollar brings back.
Return on ad spend is the first number to check on any campaign: how much revenue you get for each dollar of ads. Enter your spend and the revenue it produced, and the calculator shows your ROAS as a multiple and a percentage, plus what it means for your margins.
Your numbers
What you paid the ad platform over the period.
Sales attributed to the campaign over the same period.
Your results
At 3.5x, you are in the range most e-commerce accounts consider workable. Check it against your break-even ROAS.
- ROAS as a percentage
- 350%
- Revenue per $1 of ads
- $3.50
- Revenue minus ad spend
- $2,500
Before product, delivery and payment costs. - ACOS
- 28.6%
Ad spend as a share of revenue, the figure Amazon shows. It is the inverse of ROAS.
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Want a funnel that returns $5 per $1?
One of our clients gets a 5x ROAS from a landing page, checkout, upsells and automatic follow-up built as one system. We build the same for you, with a fixed price agreed before we start.
What ROAS measures
ROAS (return on ad spend) compares the revenue a campaign generated with what the campaign cost. A ROAS of 4x means every dollar of ads produced four dollars of sales. It says nothing about profit on its own, because it ignores what the products, the delivery and the payment fees cost; that is what the break-even ROAS calculator adds.
What a good ROAS looks like
There is no universal target, because a good ROAS depends on your margin. A store keeping 60% of each sale after costs breaks even at about 1.7x; a store keeping 25% needs 4x just to stop losing money. Many e-commerce teams treat 3x to 4x as healthy and anything above 5x as excellent, while lead-generation campaigns are judged on cost per lead instead, since the sale happens later.
For reference, the digital product funnel in our case studies returns $5 in sales for every $1 spent on ads (a 5x ROAS) with 30% of visitors buying: the ratio came from the page and the checkout, not from cheaper clicks.
ACOS to ROAS, and back
Amazon reports ACOS, advertising cost of sales, instead of ROAS. It is the same relationship turned upside down: ACOS is ad spend divided by revenue, expressed as a percentage, so a 25% ACOS means a quarter of every sale went to ads and the ROAS is 4x. The calculator shows both, and the table below covers the conversions people look up most.
| ACOS | ROAS | Reads as |
|---|---|---|
| 10% | 10x | $10 of sales per $1 of ads |
| 20% | 5x | $5 per $1 |
| 25% | 4x | $4 per $1 |
| 33% | 3x | $3 per $1 |
| 50% | 2x | $2 per $1 |
| 100% | 1x | Ads cost exactly what they brought in |
How to improve it
- Fix the page before the ads: a landing page that converts twice as well doubles ROAS at the same spend.
- Raise the average order with order bumps and upsells; our funnel took the average order from $35 to over $100.
- Follow up with the people who did not buy: email and WhatsApp sequences recover sales the ad already paid for.
- Cut the audiences and creatives with the worst ratio every week and move the budget to the best.
This is the work of our sales funnel service: the page, the checkout, the follow-up and the measurement, built as one system.
Questions, answered.
What is a good ROAS?
It depends on your margin. A common rule of thumb for e-commerce is 3x to 4x as healthy and 5x or more as excellent, but a business keeping 25% of each sale needs 4x just to break even, while one keeping 60% is profitable from about 1.7x.
How do I calculate ROAS?
Divide the revenue generated by the ads by the amount spent on them. $3,500 of revenue from $1,000 of ads is a ROAS of 3.5x, or 350%.
What is the difference between ROAS and ROI?
ROAS compares revenue with ad spend only. ROI compares profit with the total investment, including product costs, tools and people. A campaign can have a high ROAS and a negative ROI if margins are thin.
Is ROAS the same as a percentage?
Yes, expressed differently: a ROAS of 3x is 300%. Ad platforms usually show it as a multiple.
Why does my ROAS differ between Meta and my analytics?
Each tool attributes sales differently (click windows, view-through, cross-device). Pick one source of truth, ideally your own sales data, and compare campaigns on the same basis.
Does ROAS include VAT or sales tax?
Use revenue without tax, because tax is money you pass on. Using gross revenue inflates the ratio.
How do I convert ACOS to ROAS?
Divide 1 by the ACOS as a fraction. A 25% ACOS is 1 ÷ 0.25 = 4x ROAS; a 20% ACOS is 5x. To go the other way, divide 1 by the ROAS: a 3x ROAS is a 33% ACOS. The calculator shows both figures from your spend and revenue.
What is a good ACOS on Amazon?
Below your margin. If you keep 30% of each sale after product and Amazon fees, a 30% ACOS is break-even and anything under it is profit on the first sale. Sellers launching a product often accept a higher ACOS for a few weeks to gain rank, then bring it back under the margin.
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