ROAS & Marketing ROI Calculator
Calculate return on ad spend, profit, ROI, CPA, and break-even metrics.
Your ROAS & ROI appear here
Enter spend, revenue, and COGS to calculate.
ROAS & ROI Formulas
ROAS = Revenue ÷ Ad Spend
Gross Profit = Revenue × (1 − COGS%)
Net Profit = Gross Profit − Ad Spend
ROI% = (Net Profit ÷ Ad Spend) × 100
Break-Even ROAS = 1 ÷ (1 − COGS%)
Frequently Asked Questions
What is a good ROAS benchmark?
A ROAS of 4:1 is a common e-commerce benchmark. However, your break-even ROAS depends on your margins. A product with 25% margin needs ROAS ≥ 4x to be profitable.
How is ROAS different from ROI?
ROAS only looks at revenue vs spend. ROI subtracts cost of goods sold and other costs, giving a true profitability picture. A campaign can have high ROAS but negative ROI if product margins are low.
What is a good target CPA?
Your target CPA should be ≤ your Customer LTV × (1 − COGS). If LTV is $250 and COGS is 40%, your max CPA is $150 to remain profitable.
Last reviewed: October 2024
Sources:
IAB — Digital Marketing Metrics
ROAS is a channel-level metric. Attribution models and platform definitions vary — verify with your ad platform reporting.