B2B ROI Calculator

ROAS Calculator

Ad spend, revenue and gross margin → ROAS, break-even ROAS, POAS, ACoS and CPA. Transparent formula, exportable PDF & CSV report — free, no signup to calculate.

Advanced inputs & assumptions
How is this calculated?
  • ROAS = revenue from ads / ad spend
  • break-even ROAS = 1 / gross margin%
  • POAS = (revenue × gross margin%) / ad spend
  • gross profit after ad spend & fees = revenue × gross margin% − ad spend − agency/tool fee
  • ACoS % = ad spend / revenue × 100
  • CPA = (ad spend + agency/tool fee) / conversions · AOV = revenue / conversions
  • ROAS incl. fees = revenue / (ad spend + agency/tool fee)

ROAS uses the revenue your reporting attributes to the ads. It ignores organic and repeat sales, returns and refunds, and anything the customer buys later — so it measures the campaign, not the customer.

Break-even ROAS is derived from gross margin, so it is the point where the campaign covers product cost plus ad cost. It does not cover overheads; to include them, lower the gross margin input or add them to the agency/tool fee.

Full methodology & default values →

Example with demo defaults — adjust to your numbers

ROAS 4.00×
Break-even ROAS 1.67×
POAS (profit on ad spend) 2.40×
Gross profit after ad spend & fees $14,000
ACoS (ad cost of sales) 25.0%
Cost per acquisition $25
Average order value $100
ROAS including fees 4.00×

Frequently asked questions

How is ROAS calculated?

ROAS is the revenue attributed to your ads divided by what you spent on them: ROAS = revenue ÷ ad spend. Spending $10,000 to generate $40,000 gives a ROAS of 4.00×, sometimes written as 400%. ACoS is the same relationship inverted (spend ÷ revenue), so a 4.00× ROAS is a 25% ACoS. Both are printed on this page along with the exact formula.

What is a break-even ROAS?

Break-even ROAS is the point where the gross margin on what you sold exactly covers the ad spend: break-even ROAS = 1 ÷ gross margin. At a 60% gross margin you break even at 1.67×; at 25% you need 4.00× just to stand still. This is why a “good” ROAS cannot be quoted without a margin — the same 3× is comfortably profitable at one margin and loss-making at another. Note that this covers product cost and ad cost only; it does not cover overheads.

What is the difference between ROAS, POAS and ROI?

ROAS counts revenue per unit of ad spend, so it ignores what the goods cost you. POAS (profit on ad spend) uses gross profit instead — revenue × gross margin ÷ ad spend — which is why it is the figure that actually tells you whether a campaign made money. ROI goes one step further and expresses the net gain as a percentage of the total investment, including costs beyond media. This page shows ROAS, POAS and the gross profit left after ad spend and fees side by side.

Is a 4× ROAS good?

It depends entirely on your gross margin and what else the spend has to cover. Compare your ROAS to the break-even ROAS this calculator derives from your margin: above it the campaign contributes gross profit, below it the campaign costs you money however impressive the multiple looks. We deliberately do not print a target ROAS here — there is no honest single number, and the defaults on this page are a worked example, not an industry average.

Where do the default values come from?

The pre-filled numbers are demonstration defaults that produce a realistic example — they are not claimed industry averages. Replace them with your own figures for an accurate result. Where a field is labelled as an assumption, adjust it to match your business; the methodology page lists every default and its status.

Is my data stored anywhere?

Calculating stores nothing: every calculation runs in your browser, there is no account, and nothing you type is sent while you calculate. Only if you download the PDF report do we receive the work email you enter plus a short summary of the inputs you modelled, so we can follow up — the privacy page states exactly what is kept.