MARKETING · ROAS
Ad Spend / ROAS Calculator
Calculate actual ROAS, break-even ROAS, profit after ad spend, target CPA, and required conversion rate for paid campaigns.
Try a preset
Result
Revenue Breakdown
Revenue, COGS, ad spend, and profit.
How to use it
- Enter ad spend and either revenue generated directly, or conversion volume and average order value. Add product cost or COGS per unit and your target profit margin percentage.
- Read actual ROAS, break-even ROAS, profit after ad spend, profit margin, and target CPA. Break-even ROAS is the minimum return needed just to cover cost of goods — anything below that means every sale loses money.
- Interpret the ROAS health rating: Excellent means you have headroom to scale, Good means profitable but optimize before scaling, Caution means you're near break-even and should pause scale, Danger means the campaign is destroying value.
- Use target CPA as the bidding ceiling in your ad platform. If your actual CPA exceeds the target, reduce bids, tighten targeting, or improve the post-click conversion rate before increasing budget.
- Re-run weekly during active campaigns. Track ROAS by ad set and creative — blended ROAS hides underperforming segments that drag down profitable ones. Kill or pause segments below break-even first.
Questions people usually ask
What is ROAS?
ROAS (Return on Ad Spend) = Revenue ÷ Ad Spend. A ROAS of 4× means you earned $4 for every $1 spent on ads. It measures revenue efficiency but does not account for product costs — always check profitability using break-even ROAS alongside it.
What is break-even ROAS?
Break-even ROAS is the minimum ROAS needed to cover cost of goods sold. Formula: 1 ÷ (1 − COGS%). If your product has 50% COGS, break-even ROAS is 2×. Any actual ROAS below this means you're selling at a loss after ad spend.
What is a good ROAS?
Good ROAS depends on your margins. For a product with 40% COGS, break-even ROAS is ~1.67×. A 4× ROAS on that product is excellent. For a product with 80% COGS, break-even ROAS is 5× — a 4× ROAS is losing money.
What is target CPA?
Target CPA (Cost Per Acquisition) is the maximum you can spend to acquire one customer while still hitting your target profit margin. Use it as a bidding ceiling in Google, Meta, or TikTok Ads to avoid over-spending per conversion.
Is this tool free and private?
Yes. AI Biz Hub tools run entirely in your browser with no signup required. Inputs stay local unless you share the URL.
Is this financial advice?
No. Outputs are planning estimates. Ad platform performance varies by audience, creative, and seasonality — validate with actual campaign data.
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