ROI / ROAS Campaign Calculator

Enter ad spend, revenue and margin to calculate ROAS, ROI, break-even CPA and net profit — with colour-coded health gauges.

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Metrics

Detailed Values

ROAS vs ROI

They answer different questions. ROAS (Return on Ad Spend) measures gross revenue per ad dollar. ROI (Return on Investment) measures profit per dollar spent, factoring cost.

Formulas

  • ROAS = Revenue ÷ Ad Spend
  • ROI = (Revenue × Margin − Ad Spend) ÷ Ad Spend × 100
  • Break-even ROAS = 1 ÷ Gross Margin (e.g. 60% margin → 1.67x)
  • Break-even CPA = Revenue per Conversion × Margin

Benchmarks by Industry

IndustryHealthy ROAS
E-commerce (physical)4x–8x
SaaS3x+ on LTV basis
Professional services5x+
Low-margin retail8x+

Why ROAS Alone Misleads

A 3x ROAS sounds great — until you learn the margin is 25%. That's a net loss: 3 × 0.25 = 0.75, i.e., $0.75 back per $1 spent. Always pair ROAS with margin. This tool does that.

Common Mistakes

  • Using gross revenue instead of margin-adjusted revenue for ROI.
  • Ignoring ad platform fees, creative costs, and team time.
  • Comparing ROAS across different margin categories.
  • Optimising for ROAS on a scaling campaign — spend more, accept slightly lower ROAS.

ROAS FAQ

What's a good ROAS?

Depends entirely on margin. Break-even ROAS = 1 ÷ margin. With 60% margin, break-even is 1.67x; good is 3–4x. With 25% margin, break-even is 4x; good is 6x+.

Should I optimise for ROAS or revenue?

Revenue if you're scaling and can afford lower efficiency. ROAS if you're profitability-constrained. Usually a blend — measure profit, not just ROAS.

Does ROAS include COGS?

No. ROAS is gross revenue / spend. Factor margin in via ROI for profitability analysis.

What's a good break-even CPA?

Revenue per conversion × margin. If you sell a $50 product at 60% margin, break-even CPA is $30. Anything below is profitable.