Enter campaign data
Example data table
| Ad Spend | Gross Revenue | Refunds | Discounts | COGS | Other Costs | Net Revenue | ROAS | Marketing Profit |
|---|---|---|---|---|---|---|---|---|
| $1,000 | $4,500 | $200 | $150 | $1,800 | $150 | $4,150 | 4.15x | $1,200 |
| $2,250 | $7,800 | $350 | $300 | $3,100 | $420 | $7,150 | 3.18x | $1,380 |
These examples assume taxes are excluded and shipping income is zero.
Formula used
- Net Revenue = Gross Revenue − Refunds − Discounts − Taxes + Shipping Income
- ROAS = Net Revenue ÷ Ad Spend
- Marketing Profit = Net Revenue − COGS − Other Costs − Ad Spend
- ROI = (Marketing Profit ÷ (Ad Spend + Other Costs)) × 100
- Break-even ROAS = 1 ÷ (1 − ((COGS + Other Costs) ÷ Net Revenue))
- CTR = Clicks ÷ Impressions, CVR = Orders ÷ Clicks
Break-even ROAS is shown when net revenue exceeds non-ad costs.
How to use this calculator
- Enter ad spend and gross revenue for the same reporting window.
- Add refunds, discounts, and taxes to calculate net revenue.
- Include COGS and other costs to estimate profit and break-even ROAS.
- Add orders, clicks, and impressions to compute efficiency rates.
- Click Calculate ROAS, then download CSV or PDF if needed.
ROAS turns spend into revenue efficiency
ROAS shows how many revenue units you generate per unit of ad spend. It is quick for comparing campaigns, but it becomes more accurate when you work from net revenue: subtract refunds, discounts, and taxes, then add shipping income if you treat it as revenue. ROAS is not margin-aware, so this calculator also surfaces gross margin, marketing profit, and ROI to prevent “high ROAS” cash issues.
Break-even ROAS ties targets to margins
Break-even ROAS links performance to your cost structure. When non‑ad costs (COGS + other variable costs) consume 50% of net revenue, the break-even ROAS is 1/(1−0.50)=2.00x. If costs consume 70%, break-even ROAS rises to 3.33x. If your gross margin is 55% and other costs are 10%, break-even is roughly 1/(1−0.45)=1.82x. Use the break-even line as your minimum target, then add a buffer for returns or bid inflation.
Reporting windows and attribution hygiene
Match inputs to a single reporting window and attribution rule. If spend is daily but revenue is weekly, ROAS will mislead. Keep clicks, impressions, and orders aligned with the same time period as revenue and spend, and exclude organic-only sales from paid reporting when possible. Account for delays: refunds can post days later, and some platforms credit conversions inside a 7‑day click or 1‑day view window. Note the rule in the campaign name for comparisons.
Diagnosing ROAS drivers with supporting metrics
Use the supporting metrics to find leverage. CTR and CPC hint at creative quality and competitiveness, while conversion rate and CPA show onsite and offer efficiency. ROAS often improves fastest by raising AOV (bundles, thresholds, cross-sells) or improving CVR (landing speed, message match). When ROAS drops, check whether the issue is traffic cost (CPC/CPM) or purchase efficiency (CVR/AOV). Segment by device, geo, or audience to pinpoint where efficiency breaks.
Using LTV ROAS for repeat buyers
For repeat-purchase or subscription businesses, LTV ROAS can better reflect true value. The LTV multiplier scales net revenue to approximate downstream purchases; for example, 1.25 assumes 25% additional lifetime value beyond the first purchase. Tie the multiplier to cohort data and the payback period you can finance, such as 30–90 days. Revisit it monthly: overstated LTV hides problems, while understated LTV can cause under-investment in acquisition.
FAQs
What revenue should I enter for ROAS?
Use revenue attributed to the same campaign window as spend. Start with gross revenue, then adjust refunds, discounts, taxes, and shipping income to reach net revenue for more realistic ROAS.
Why can ROAS look strong but profit is negative?
ROAS ignores COGS and operating costs. High return rates, heavy discounts, fulfillment fees, or expensive traffic can erase margin. Review marketing profit, gross margin, and break-even ROAS together before scaling spend.
How is break-even ROAS calculated here?
It estimates the minimum ROAS needed to cover non-ad variable costs. Break-even ROAS = 1 ÷ (1 − ((COGS + other costs) ÷ net revenue)). If non-ad costs are 50% of revenue, break-even is 2.00x.
Should I include taxes and shipping income?
Include taxes if your revenue figure includes tax and you want net revenue after tax. Add shipping income if you treat it as revenue. The key is consistency across reporting so campaigns compare fairly.
What is a “good” ROAS target?
A good target is any ROAS above your break-even level with a safety buffer. Higher-margin products can profit at lower ROAS, while low-margin items may need 3x+ or more depending on costs and returns.
How does the LTV multiplier change results?
It scales net revenue to approximate lifetime value beyond the first purchase. Example: 1.25 assumes 25% additional value later. Use it only when cohort retention is stable and you regularly validate it with real customer data.
Built for campaign planning and performance reporting.