# ROAS calculator

> Free ROAS calculator. Enter ad spend, revenue and margin to get your ROAS, the ROAS you need to break even, and the ROAS that keeps your target net margin.

Free, no sign-up, runs in the browser: https://analify-ai.scalyax.ai/tools/roas-calculator

A ROAS number means nothing until you know the line it has to beat. Enter spend, revenue and margin to see your ROAS next to your break-even and target ROAS.

## What it calculates

ROAS (return on ad spend) is revenue divided by ad spend. Whether it is good depends on your margin. Break-even ROAS is the ROAS where profit before ads exactly pays for the ads. Target ROAS is the ROAS that also leaves the net margin you want. POAS (profit on ad spend) shows the profit each unit of spend brings back.

## Formula

```
ROAS = Revenue ÷ Ad spend
Break-even ROAS = 1 ÷ margin
Target ROAS = 1 ÷ (margin − target net margin)
Profit after ads = Revenue × margin − Ad spend
POAS = Profit after ads ÷ Ad spend
```

## Worked example

Inputs:
- Ad spend: USD 8,000
- Revenue from ads: USD 26,000
- Margin before ads: 45%
- Target net margin: 10%

Results:
- Your ROAS: 3.25×
- Break-even ROAS: 2.22×
- ROAS for your target net margin: 2.86×
- Profit after ads: USD 3,700
- POAS (profit on ad spend): 0.46×
- Ad spend as share of revenue: 30.8%

## What changes the result

Margin before ads at five values; every other input as in the example.

| Margin before ads | Break-even ROAS | ROAS for your target net margin |
| --- | --- | --- |
| 22.5% | 4.44× | 8× |
| 33.8% | 2.96× | 4.2× |
| 45% (example) | 2.22× | 2.86× |
| 56.3% | 1.78× | 2.16× |
| 67.5% | 1.48× | 1.74× |

## How to read the result

Below break-even ROAS, every sale from ads loses money. Between break-even and target, ads pay for themselves but miss your goal. Above target, you can consider spending more.
Use a margin after product cost, shipping and payment fees, not product margin alone. With cash on delivery, take returned orders out too: the max cost per order calculator does that.

## Questions

**What is a good ROAS?**
One above your break-even ROAS, which is 1 ÷ your margin before ads. A 3× ROAS is profitable at a 50% margin and loses money at a 25% margin.

**How do I calculate break-even ROAS?**
Divide 1 by your margin before ads, as a decimal. At a 40% margin: 1 ÷ 0.4 = 2.5×.

**What is the difference between ROAS and POAS?**
ROAS divides revenue by spend. POAS divides profit after ads by spend, so it already includes your costs. A POAS above 0 means the ads made money.

**Do you store what I enter?**
No. The calculation runs in your browser and nothing is sent to Analify.

## Use your real numbers

Analify reads ad spend from Meta, TikTok and Google and sales from Shopify, then shows blended ROAS, break-even ROAS and nROAS after returned orders, side by side, every day. Analify reads 3 of these 4 inputs live. Try the calculator: https://analify-ai.scalyax.ai/tools/roas-calculator

More free ecommerce calculators: https://analify-ai.scalyax.ai/tools