# ROAS Calculator: Return on Ad Spend and Break-Even ROAS

> Work out your ROAS, break-even ROAS and profit per $1 of ad spend from spend, revenue and margin. Free, no signup, runs in your browser.

Canonical: https://use-addy.site/tools/roas-calculator

Type your ad spend, the revenue it brought in and your gross margin. See your ROAS, the ROAS you need to break even, and whether the ads made money.

ROAS Calculator is a free tool from Addy, an AI agent that makes portrait video ads for Instagram Reels, TikTok and YouTube Shorts. It runs in the browser on the HTML page; this markdown version describes it.

## Why people use it

- **Break-even, not just ROAS.** A 3x ROAS can still lose money on a thin margin. The calculator shows the ROAS your margin needs before you call an ad a winner.
- **Profit in dollars.** Gross profit from the sales minus the ad spend, so you see the real result of the campaign.
- **Private.** It runs in your browser. Nothing is saved or sent.

## How it works

1. **Copy spend and revenue.** From Ads Manager or your store, for the same date range and campaign.
2. **Add your margin.** Gross margin after product cost, shipping and fees, as a percentage.
3. **Read the verdict.** Above break-even, scale it. Below, fix the creative or the offer before spending more.

## Questions

### How do you calculate ROAS?

Divide the revenue your ads brought in by what you spent on them. $7,000 in sales from $2,000 of ads is a ROAS of 3.5, often written 3.5x or 350%.

### What is break-even ROAS?

1 divided by your gross margin. At a 40% margin you need a ROAS of 2.5 just to cover the ad spend on the first order; anything below that loses money unless customers buy again.

### What is a good ROAS?

Any ROAS above your break-even is profitable on the first order. As a rough rule of thumb, many e-commerce brands aim for 2x to 4x, but the right target depends on margin and repeat purchases.

### Is ROAS the same as ROI?

No. ROAS only compares revenue with ad spend. ROI also subtracts product costs and other expenses, which is why the calculator uses your margin to show profit.