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Book a call →Determine your true ad profitability in real time. Input ad spend, revenue, and product margins to discover your break-even ROAS and net profit. 100% free.
A ROAS calculator works out your return on ad spend: revenue from ads ÷ ad spend. $10,000 in sales from $2,500 in ads is a 4.0x ROAS. Add your gross margin and it also shows your break-even ROAS (1 ÷ margin, e.g. 1.67x at a 60% margin) and the profit left after ads, so you can see whether a campaign makes money, not just revenue.
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Calculate Return on Ad Spend, break-even thresholds, and net dollar profit based on your actual product margins.
You have healthy margin buffer above your 1.54x break-even target. To scale daily ad spend aggressively without fatiguing your audience, deploy fresh creator hook variants and test sibling angles across Meta and TikTok.
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Return on ad spend (ROAS) is revenue from ads divided by what you spent on those ads. It is written as a multiple (4.0x) or a percentage (400%). ROAS says nothing about profit on its own; for that you need your margin, which is what the break-even figure below adds.
Revenue from ads: $10,000 Ad spend: $2,500 ROAS = $10,000 ÷ $2,500 = 4.0x (400%) Gross profit at 60% margin = $10,000 × 0.60 = $6,000 Profit after ads = $6,000 − $2,500 = $3,500
Break-even ROAS is the ROAS at which ad spend exactly eats your gross profit: 1 ÷ gross margin. Below it you lose money on every order; above it you make money. Use the margin after product cost, shipping, payment fees and returns, not the price markup.
| Gross margin | Break-even ROAS | ROAS for 15% profit on revenue |
|---|---|---|
| 30% | 3.33x | 6.67x |
| 40% | 2.50x | 4.00x |
| 50% | 2.00x | 2.86x |
| 60% | 1.67x | 2.22x |
| 70% | 1.43x | 1.82x |
| 80% | 1.25x | 1.54x |
To keep a set profit after ads, subtract that profit from your margin before dividing: target ROAS = 1 ÷ (gross margin − target profit). With a 60% margin and a 15% profit goal, target ROAS = 1 ÷ 0.45 = 2.22x. This is the number to set in a target-ROAS bid strategy or to judge campaigns against.
The calculator above does this for you: enter a profit target and it shows the target ROAS, the revenue your current spend needs to bring in, and the most you can spend for your current revenue.
For an ecommerce store, use the revenue your ads drove and the margin after product cost, shipping, payment fees and an allowance for returns. If your store has big repeat-purchase revenue, check the first-order ROAS separately from 90-day ROAS.
For B2B and lead generation there is no checkout, so estimate revenue as leads × close rate × average deal value, or use the closed revenue from your CRM. 40 leads at a 10% close rate and a $5,000 deal value is $20,000 to compare with ad spend.
With revenue in B2, spend in C2 and gross margin (as a decimal) in D2: ROAS =B2/C2, break-even ROAS =1/D2, profit after ads =B2*D2-C2, and a yes/no check =IF(B2/C2>=1/D2,"profitable","losing money").
For several campaigns, total ROAS is SUM(revenue) ÷ SUM(spend). Averaging the ROAS column gives a $50 test the same weight as a $50,000 campaign.
Platform ROAS counts only the sales the platform's pixel can attribute. MER uses all revenue, so it catches sales that tracking misses but also includes repeat and organic buyers. Watch both: platform ROAS to compare ads, MER to check the business.
| Metric | Formula | What it tells you |
|---|---|---|
| ROAS | Ad revenue ÷ ad spend | How much revenue each ad dollar brings in |
| ROI | (Profit − cost) ÷ cost | Whether the whole investment made money |
| MER (blended ROAS) | Total store revenue ÷ total ad spend | Overall efficiency, without relying on pixel attribution |
A good ROAS is any ROAS above your break-even, with room for your profit target. That is why the same 2.0x is excellent for a store with an 80% margin and a loss for one with a 40% margin. Work out your break-even first, then judge every campaign against it.
Products bought again and again can run below first-order break-even, because the profit comes from later orders. In that case compare customer acquisition cost with lifetime value instead.
Many media buyers and founders make the fatal mistake of optimizing for vanity ROAS numbers without factoring in cost of goods sold (COGS), shipping, merchant processing fees, and overhead. An ad set delivering a 2.0x ROAS sounds profitable on paper, but if your gross margin is 45%, you are actually losing money on every single order.
Your Break-Even ROAS represents the absolute minimum multiplier your advertising must achieve before your business turns a dollar of profit:
Break-Even ROAS = 1 ÷ (Gross Profit Margin %)For example:
When campaigns scale beyond $500/day, ad frequency increases, ad fatigue sets in, and ROAS naturally begins to decay. Brands that maintain 3.0x+ ROAS at scale do so not by changing campaign bid strategies, but by systematically deploying fresh creative angles, hooks, and creators. By feeding Meta Advantage+ and TikTok algorithms fresh assets weekly, Cost Per Acquisition (CPA) remains stable.
Seven Figure Studio produces high-converting UGC video ads, AI creator variations, and static graphics designed to beat break-even ROAS. Packages start at $35 per video with 24 to 48 hour delivery.
Offer + audience in minutes
Scroll-stop written for ads
Pacing, captions, CTA lock
Ready for Meta / TikTok / YT
We review your offer and ad account before the call, then recommend the right package, the first angles to test for your ROAS, and a delivery timeline. No pitch deck.