ROAS Calculator

What is ROAS? ROAS (Return on Ad Spend) is the multiple showing how much revenue your ads generate per dollar of ad spend. A ROAS of 3.5x means $3.50 of revenue for every $1 invested in advertising. It is the foundational metric for measuring paid media performance in ecommerce — but raw ROAS is misleading without context. A 3x ROAS can be wildly profitable for a brand with 70% margins and deeply unprofitable for one with 30% margins.

This calculator goes beyond the basic ROAS formula by factoring in your cost of goods sold (COGS) and other variable costs like shipping, payment processing, and overhead. It calculates your true net profit from advertising, not just top-line revenue. The breakeven analysis reveals the exact minimum ROAS you need to avoid losing money on every ad dollar — a number that most media buyers and DTC founders have never calculated.

The scenario modeling feature lets you stress-test budget changes before committing real dollars. What happens if you increase spend by 20%? What if your CPA drops 15%? These are the questions that separate profitable scaling from expensive mistakes. Every ecommerce brand running paid media on Meta, Google, or TikTok should know their breakeven ROAS before setting campaign targets. Without it, you are guessing — and in DTC, guessing gets expensive fast.

Use this calculator weekly to track your ROAS against your breakeven threshold and run scenarios before making any budget changes. Pair it with the Breakeven ROAS calculator and Contribution Margin tool for a complete picture of your ad profitability.