ROAS calculator

Know what you can spend
before it costs you

Check the return on a campaign, or work back from order value and margin to the ROAS, CPA and CPC you need to break even.

What do you want to calculate?

Ad spend

Revenue from ads

Currency

Your ROAS

4.00xEvery $1 of ad spend brought back $4.00 in revenue. ROAS ignores your costs, so compare it with your break-even ROAS before calling it profitable.

ACOS (ad spend ÷ revenue): 25%
Revenue per $1 spent: $4.00

ROAS = Revenue ÷ Ad spend · ACOS = Ad spend ÷ Revenue

About ROAS

Return isn’t profit
margin sets the target

ROAS and ACOS

Return on ad spend is the revenue your ads bring in for every unit of currency you spend. ACOS is the same relationship turned around: ad spend as a share of revenue, the way Amazon reports it.

ROAS = Revenue ÷ Ad spend
ACOS = Ad spend ÷ Revenue × 100
Break-even ROAS = 1 ÷ Profit margin
Max CPA = Average order value × Profit margin

Why break-even matters

ROAS ignores your costs. A 3x ROAS sounds healthy, but with a 25% margin you need a 4x ROAS just to cover the ad spend. Anything below your break-even ROAS loses money on every order, even when revenue grows.

Set bids from your margin

Once you know your average order value and margin, you know the most you can pay for a sale. Add your conversion rate and you get the most you can pay for a click. That keeps bids tied to profit instead of guesswork, and gives you a clear target to hand to whoever runs the campaign.

Check what your clicks and conversions cost with the CPC, CTR and CPA calculator, plan the media with the budget planner, or see how AdGeeks runs Amazon DSP for retail brands.

Frequently asked questions

What is a good ROAS?

Any ROAS above your break-even ROAS is profitable on the ad spend. Your break-even ROAS is 1 divided by your profit margin, so a business with a 25% margin needs at least 4x.

What is the difference between ROAS and ACOS?

They describe the same thing from opposite sides. ROAS is revenue divided by ad spend; ACOS is ad spend divided by revenue, shown as a percentage. A 4x ROAS equals a 25% ACOS.

How do I calculate break-even ROAS?

Divide 1 by your profit margin before ad costs. With a 40% margin, break-even ROAS is 1 ÷ 0.4 = 2.5x.

What is the maximum CPA I can afford?

Multiply your average order value by your profit margin. With a 100 USD order and a 30% margin, you can spend up to 30 USD per sale and still break even.

Does ROAS include returns and other costs?

No. ROAS only compares revenue with ad spend. Use your margin after product, shipping and return costs to get a break-even target you can trust.

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