ROAS Calculator
Calculate your return on ad spend (ROAS), break-even ROAS and POAS in seconds. Free, no signup required.
Everything is calculated live in your browser, nothing is sent.
Revenue attributed to your ad campaigns over the period.
Total spent on Meta, Google, TikTok or other platforms.
Average gross margin after COGS, excluding ad costs.
Revenue generated per dollar spent on advertising.
Minimum ROAS to avoid losing money given your margin.
Actual profit per dollar spent on advertising (margin minus ad spend).
Gross margin minus ad spend.
Your campaigns generate a net profit after ad spend. Keep going, scale.
What ROAS is and why it's not enough
ROAS (Return On Ad Spend) measures the revenue generated by every dollar invested in advertising. It's the most used metric by e-commerce merchants, but it's misleading. A ROAS of 3 may look great, but if your gross margin is 20%, you're losing money. Break-even ROAS and POAS (Profit On Ad Spend) are the real metrics that matter.
$1,000 revenue / $250 ad spend = ROAS of 4
25% margin = break-even of 4. Below this, you lose money.
$1,000 × 25% − $250 = $0, POAS of 0, break-even reached.
What ROAS to aim for given your gross margin
The lower your margin, the higher your ROAS needs to be to stay profitable. Here's the minimum to reach based on your margin.
| Gross margin | Break-even ROAS | Target ROAS (healthy profit) |
|---|---|---|
| 10% | 10.00 | 12.00 |
| 15% | 6.67 | 8.00 |
| 20% | 5.00 | 6.00 |
| 25% | 4.00 | 4.80 |
| 30% | 3.33 | 4.00 |
| 40% | 2.50 | 3.00 |
| 50% | 2.00 | 2.40 |
| 60% | 1.67 | 2.00 |
| 70% | 1.43 | 1.72 |
Four levers to improve your ROAS
Before scaling or cutting a campaign, here are the concrete levers that actually move ROAS.
Increase your average order value
Upsells, cross-sells, free shipping thresholds, bundles. Every dollar added to the cart mechanically improves your ROAS without touching ad spend.
Improve your gross margin
Renegotiate with suppliers, optimize transaction fees, reduce shipping costs. A margin going from 25% to 35% halves your break-even ROAS.
Cut unprofitable audiences
Analyze ROAS per audience and campaign. 20% of audiences often generate 80% of profit. Cut the rest, reallocate budget.
Optimize your conversion rate
Product page, checkout, speed, trust signals. Moving from 2% to 3% conversion rate improves your ROAS by 50% without touching ads.
Frequently asked questions
What's the difference between ROAS and POAS?+
ROAS measures revenue generated per dollar spent. POAS measures actual profit after COGS. A ROAS of 4 with a 20% margin can result in a negative POAS. POAS is the metric that matters for real profitability.
What's a good ROAS for e-commerce?+
It depends entirely on your gross margin. With a 30% margin, a ROAS of 3.33 is break-even. With a 50% margin, break-even drops to 2. There's no universal good ROAS, only a good ROAS for your margin.
How do I calculate my gross margin?+
Gross margin (%) = (Sale price − COGS) / Sale price × 100. COGS include cost of goods sold, transaction fees and shipping. Ad spend should not be included in gross margin.
Does this calculator account for refunds and transaction fees?+
No. This calculator uses the gross margin you enter as-is. For automated calculation including COGS, shipping, transaction fees and real ad spend, Fullmetrix does it in real time across all your orders.
Is my data saved?+
No. Everything is calculated locally in your browser, nothing is sent to Fullmetrix or any third party.
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