ROAS Calculator

A 4:1 ROAS is a common ecommerce target, but the return you actually need is set by your margins: a business with 30% gross margin needs a far higher ROAS to break even than one at 70%. ROAS counts revenue, not profit. It also lives on attribution: the same campaign can show very different returns in the ad platform and in your own analytics, so pick one source of truth and stay with it.

Hold spend and attributed revenue per campaign in a Ferra table and you can ask which campaigns clear your target ROAS without exporting anything.

Keep it to one campaign and one period. Enter spend and attributed revenue; the calculator returns ROAS as both a ratio and a percentage.

Attributed revenue divided by ad spend, the whole formula. Suppose you spent $5,000 on a campaign and your tracking credits it with $15,000 in revenue.

15,000 ÷ 5,000 = 3, so ROAS is 3: usually written 3:1 or 300%. Every ad dollar brought back three dollars of tracked revenue.

ROAS is not ROI, and confusing them costs money. ROAS uses revenue, not profit: a 2:1 ROAS on a product with a 40% gross margin loses money, because $2 of revenue carries only $0.80 of gross profit against $1 of spend. Know your margin before you decide what ROAS you need.

Start from break-even, not folklore. Your floor is roughly 1 divided by gross margin: at a 50% margin you need at least 2:1 just to cover the ad cost, while at a 25% margin the break-even is 4:1. The often-quoted 4:1 target only means something once you know where your floor sits.

Extremes carry information. A very high ROAS often means the campaign is skimming easy demand, branded search, retargeting, and could profitably scale further. A low one points to weak targeting, an offer or landing page that isn't converting, or an attribution model crediting the campaign for sales it didn't cause.

Spend the same money on people more likely to buy, or earn more from each buyer. Every lever below hits one side of the ratio.