Free tool

ROAS Calculator

ROAS is the revenue your ads bring in divided by what you spent on them: $8,000 from $2,000 is a ROAS of 4, which Google Ads writes as 400%. That number alone doesn’t tell you whether the ads made money. Add your margin to see the ROAS you need to break even. Running ads on more than one platform? Each one can report a healthy ROAS while the ads as a whole lose money, so check them against what your store actually sold.

ROAS
4.00

$8,000.00 ÷ $2,000.00 = 4.00

$4.00 back for every $1 spent. Google Ads writes it as 400%.

Break-even ROAS
3.33

1 ÷ 30% = 3.33

Profit after ad spend
$400.00

Above break-even

Ad spend in column B, revenue in column C.

Break-even ROAS: the number your ROAS has to beat

Even an ad platform will tell you a high ROAS can come with a low ROI. Here’s TikTok’s own ROAS guide: “A campaign with a high ROAS may still have a low ROI if product margins or shipping costs are high.”

Break-even ROAS is 1 divided by your profit margin before ads: what’s left of each sale after product cost, shipping and payment fees. At a 30% margin it’s 1 ÷ 0.30 = 3.33. Below that, the ads cost more than the margin on the sales they bring in.

With the numbers pre-filled above, $8,000 from $2,000 leaves $2,400 of margin at 30%, or $400 after the ads. If the same $2,000 brings in $6,000, that’s a ROAS of 3 and you lose $200.

At a 30% margin, the ads need a ROAS above 3.33
The dashed line marks the 3.33 break-even.

Don’t work it out from gross margin. As Product Metrics points out, that gives a break-even ROAS that’s too low. And a ROAS of 1, or 100%, only gets the ad money back. You still haven’t paid for the product.

In Google Sheets, with ad spend in B2, revenue in C2 and the margin as a percent in D2:

  • ROAS: =IFERROR(ROUND(C2/B2, 2), "")
  • Break-even ROAS: =IFERROR(ROUND(1/D2, 2), "")
  • Profit after ad spend: =C2*D2-B2

Blended ROAS: why your channels add up to more than you sold

Meta and Google each report the revenue they credit to their own ads, by their own rules. Meta’s Purchase ROAS is purchase conversion value divided by amount spent. It counts purchases attributed to your ads, and Meta’s default attribution setting is 7-day click, 1-day view and 1-day engagement. Google Ads’ Conv. value / cost divides the conversion value Google Ads counts by your cost. Google also expects Google Analytics and Google Ads to differ, often by up to 20%, because their attribution models differ.

So the revenue the platforms report was never meant to add up to your sales. Blended ROAS ignores what the platforms claim. It’s your store’s revenue for the same dates, divided by all your ad spend.

Here are the numbers pre-filled under Several channels. Facebook Ads reports $12,600 on $3,000, a ROAS of 4.20. Google Ads reports $9,400 on $2,000, a ROAS of 4.70. Together that’s $22,000 on $5,000, or 4.40. But your store sold $15,000 over the same dates, so the blended ROAS is 3.00.

The channels report $7,000 more than the store sold
Example numbers. Bars share one scale from $0 to $25,000.

At a 30% margin, both channels clear the 3.33 break-even with room to spare. The blended 3.00 doesn’t, so the ads are losing money. That’s the number to put in front of a client, next to what each channel reports.

Pick one store figure and use it every month. In Shopify, net sales is gross sales minus discounts and returns, and total sales adds taxes, duties, shipping charges and fees on top.

In Google Sheets, put each channel’s ad spend in B2:B20 and your store’s revenue in F2:

=IFERROR(ROUND(F2/SUM(B2:B20), 2), "")

For the ROAS the channels report together, put their revenue in column C and use =IFERROR(ROUND(SUM(C2:C20)/SUM(B2:B20), 2), "").

Keeping those cells current is the part we do. SyncWith brings ad spend from Facebook Ads and Google Ads and sales from Shopify into Google Sheets on a schedule you pick, from every 5 minutes to monthly, so the blended ROAS in your client report updates on its own. Facebook Ads calls it Spend and Google Ads calls it Cost: map the two once in your summary tab. Facebook Ads reports use the default attribution window, meant to match Ads Manager, unless you pick another. The free Hobby plan includes 35 report refreshes a month, and paid plans start at $24.99 a month. See Google Sheets pricing.

Get ad spend and store sales into one sheet automatically

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Questions

What does a ROAS of 2.5 mean?

You get $2.50 in revenue for every $1 of ad spend. It breaks even at a 40% margin (1 ÷ 2.5) and makes money above that. A ROAS of 1.5 needs a 66.7% margin just to break even.

What ROAS is 25% ACoS?

A ROAS of 4. Amazon’s ACoS is ad spend divided by ad revenue, times 100, so it’s ROAS flipped over. 25% ACoS is $1 of spend for every $4 of revenue.

Is a 3.0 ROAS good?

Only if your margin before ads is above 33.3% (1 ÷ 3). The benchmark tiers on other ROAS pages disagree with each other, and none of them knows your margin. Use your break-even instead.

What’s the difference between ROAS and ROI?

ROAS compares revenue with ad spend. ROI compares profit with what you spent. Say $2,000 of ads brings in $8,000 at a 30% margin. That’s a ROAS of 4, but the ads leave only $400 of profit on $2,000 of spend, an ROI of 20%.

To cite this calculator: SyncWith ROAS Calculator, https://syncwith.com/tools/roas-calculator.