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ROAS calculator

Work out your return on ad spend, and the break-even ROAS your business needs before ads make a profit.

ROAS
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Break-even ROAS
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Add your margin to see it
Profit after ad spend
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How to calculate ROAS

ROAS = revenue from ads ÷ ad spend. If you spend ₹10,000 on ads and they bring ₹40,000 of sales, your ROAS is 4x — ₹4 back for every ₹1 spent.

Why break-even ROAS matters more

Revenue isn't profit. Out of every sale you pay for the product, shipping, payment fees and returns. What's left is your margin. Break-even ROAS = 100 ÷ margin %.

Margin after costsBreak-even ROAS
60%1.67x
40%2.5x
25%4x
15%6.67x

The lower your margin, the higher the ROAS you need just to break even.

Ways to improve ROAS

  • Fix tracking first, so platforms learn from real orders (pixel, Conversions API, GA4).
  • Refresh ad creative often — tired ads cost more for the same sales.
  • Improve the product page and checkout; a better conversion rate lifts ROAS on every campaign.
  • Cut COD returns with order confirmation calls or WhatsApp messages.
  • Bring buyers back with WhatsApp and email, which cost far less than winning new customers.

See how we run performance marketing for profit, and e-commerce growth beyond ads.

Ads not paying back?

We run Google and Meta ads judged on profit, not just ROAS — with tracking that matches your real orders.

Free, no obligation. We only use your number to call you about this.

FAQ

Common questions.

What is a good ROAS?

Any ROAS above your break-even ROAS makes money; below it, ads lose money however good the number looks. Because margins differ so much between businesses, there's no single good ROAS — work out your own break-even first.

How do I calculate break-even ROAS?

Divide 100 by your margin percentage. With a 40% margin after product cost, shipping, fees and returns, break-even ROAS is 100 ÷ 40 = 2.5x.

What's the difference between ROAS and ROI?

ROAS compares revenue with ad spend only. ROI compares profit with everything you invested. A campaign can show a healthy ROAS and still lose money once product and delivery costs are counted.

Why is the ROAS in my ad account different from my real sales?

Ad platforms count sales by their own rules — for example, a sale up to several days after a click or view. They also don't know about cancelled orders or COD orders that come back. Check against your store or CRM.

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