ROAS calculator
Work out your ROAS in seconds, the minimum ROAS you need to break even, and what you actually keep after ad spend.
Your ROAS
-Break-even ROAS
-Left after ad spend
-Fill in all three fields.
What is ROAS?
ROAS stands for return on ad spend: how much revenue you get back for every euro you spend on ads. The formula is simple:
ROAS = revenue from ads ÷ ad spend
Spend €500 and make €2,000 in revenue, and your ROAS is 4 (often written as 4x or 400%).
Why a high ROAS does not always mean profit
ROAS looks at revenue, not profit. Your cost of goods comes off every euro first. So the key question is not "is my ROAS high?" but "is my ROAS above my break-even ROAS?"
Break-even ROAS = 1 ÷ gross margin
With a 40% gross margin your break-even ROAS is 2.5. Anything above is profit, anything below costs you money. With a 25% margin you already need a ROAS of 4 to break even.
What is a good ROAS?
There is no single number that fits everyone: it depends mostly on your margin. Use your break-even ROAS as the floor and also consider customer lifetime value. A customer who comes back may cost more the first time.
How to raise your ROAS
- Test more ads. The creative is your biggest lever: a different hook or format often moves results more than targeting.
- Cut what does not work and move budget to the winners.
- Raise your margin or order value, for example with bundles. That lowers your break-even ROAS.
Testing lots of ads normally takes time and money. With Genly you make variations in your own brand style in minutes, so you learn faster what works.
Frequently asked questions
Is ROAS the same as ROI?
No. ROAS compares revenue with ad spend. ROI looks at profit after all costs. A ROAS of 3 can still mean a loss if your margin is low.
How do I calculate my gross margin?
Take your selling price minus your cost of goods, and divide by the selling price. Sell something for €50 that costs €30 and your gross margin is 40%.
Where do I find ROAS in Meta?
In Ads Manager you can add the column "Purchase return on ad spend (ROAS)". You need to track purchases with the Meta pixel or the Conversions API.
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