ROAS Calculator
Return on Ad Spend (ROAS) is the single most important metric for evaluating paid advertising performance. Enter your revenue and ad spend, and this calculator instantly shows your ROAS as both a ratio (e.g. 4.5x) and a percentage (450%), your absolute profit or loss, and whether you're above or below the breakeven point.
A ROAS of 1.0x means you earned back exactly what you spent — breakeven. Anything above 1.0x is profitable on a gross basis (before accounting for product costs, overhead, and other expenses). The tool highlights profitability with clear green/red indicators so the answer is immediately obvious.
Useful for marketers evaluating campaign performance, agencies reporting to clients, and anyone running paid ads on Google, Meta, TikTok, or any other platform. Everything runs in your browser — no data is sent anywhere.
By The Paper Room Editorial Team — Marketing & Analytics Tools
Frequently asked questions
What is a good ROAS?▼
It depends on your margins. A common benchmark is 4:1 (4x) — $4 in revenue for every $1 spent on ads. But if your product has 80% margins, even a 2x ROAS is profitable; if margins are thin (e.g. 20%), you might need 6x or higher to cover costs. The key is whether the revenue minus ad spend minus product/fulfillment costs leaves you with a profit.
What's the difference between ROAS and ROI?▼
ROAS is revenue divided by ad spend — it measures the top-line return on your advertising investment specifically. ROI (Return on Investment) is (profit / total investment) x 100 and accounts for all costs (product, shipping, overhead), not just ad spend. ROAS is a marketing-specific metric; ROI is a broader business metric.
Is ROAS the same as CPA or CPL?▼
No — CPA (Cost Per Acquisition) and CPL (Cost Per Lead) measure the cost side only: how much you spent per conversion or lead. ROAS measures the revenue side: how much revenue each dollar of ad spend generated. You need both to get the full picture — a low CPA is meaningless if those customers don't generate enough revenue.