ROAS Calculator
Calculate your return on ad spend and break-even ROAS — so you know whether a campaign is actually profitable, not just generating revenue.
Why raw ROAS can be misleading
A 3x ROAS sounds healthy, but whether it is actually profitable depends entirely on your margin. A campaign selling a product with a 20% margin needs a 5x ROAS just to break even — at 3x, it is losing money on every sale. A campaign with a 60% margin is comfortably profitable at the same 3x.
- Break-even ROAS formula: 100 ÷ margin percentage. At a 25% margin, break-even is 4x — you need every dollar of spend to return at least $4 in revenue just to cover costs.
- Blended vs platform-reported ROAS: Google Ads and Meta Ads each report their own ROAS, often double-counting the same conversion. Use GA4 or a unified view for the real blended number across channels.
- New customer ROAS vs total ROAS: Retargeting campaigns often show high ROAS but are converting customers who would have bought anyway. Separate new-customer ROAS from repeat-customer ROAS to see true acquisition efficiency.
- Target ROAS bidding: Once you know your break-even ROAS, set Target ROAS in Google Ads slightly above that number — bidding exactly at break-even leaves no margin for measurement error or attribution gaps.
Related tools and guides
Estimate how much of your Google Ads budget is being wasted and what you could recover.
How to combine Google Shopping, Performance Max, and Meta Ads for the highest blended ROAS.
When to use Target ROAS bidding, how to set the right target, and when to stop.
Track ROAS automatically with Claude
Connect your ad accounts to MCP Ads and ask Claude for blended ROAS, break-even analysis, and which campaigns to scale.