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ROAS Calculator

Computes return on ad spend (revenue / ad spend) as a ratio and percentage, the advertising cost of sales (ACoS), and, when the gross margin is given, the break-even ROAS (1 / margin) and the gross profit left after ad spend.

When to use

You want to judge whether a paid campaign pays for itself: revenue per unit of ad spend and the ROAS needed to break even at your margin.

Do not use when: You need cost per click or per acquisition (use ad-metrics), or a full return on investment with all costs (use roi).

Formula

ROAS = revenue / ad_spend; ACoS % = ad_spend / revenue × 100; break_even_ROAS = 1 / (gross_margin_percent/100); profit = revenue × gross_margin_percent/100 − ad_spend

Inputs

Parameter	Type	Unit	Required	Description
`revenue`	number		yes	Sales revenue generated by the campaign. Range: ≥ 0, ≤ 1000000000000
`ad_spend`	number		yes	Amount spent on the campaign. Range: > 0, ≤ 1000000000000
`gross_margin_percent`	number	%	no	Gross margin on the revenue (after cost of goods, before ad spend); enables break-even ROAS and profit. Range: > 0, ≤ 100

Outputs

Output	Type	Unit	Description
`roas`	number		revenue / ad_spend (e.g. 5 means 5:1).
`roas_percent`	number	%	roas × 100.
`acos_percent`	number	%	ad_spend / revenue × 100 (advertising cost of sales, the inverse of ROAS).
`break_even_roas`	number		100 / gross_margin_percent: the ROAS at which gross profit equals ad spend (only when margin given).
`gross_profit_after_ad_spend`	number		revenue × margin − ad_spend (only when margin given).
`assessment`	string		Comparison of ROAS with the break-even ROAS.

Example

Revenue 5,000 on spend 1,000, 40 % margin: {"revenue":5000,"ad_spend":1000,"gross_margin_percent":40} → {"roas":5,"roas_percent":500,"acos_percent":20,"break_even_roas":2.5,"gross_profit_after_ad_spend":1000}

Revenue 2,400 on spend 800: {"revenue":2400,"ad_spend":800} → {"roas":3,"roas_percent":300,"acos_percent":33.33}

GET https://tttkmbb.com/api/v1/calculate/roas?revenue=5000&ad_spend=1000&gross_margin_percent=40

Machine access

API: GET https://tttkmbb.com/api/v1/calculate/roas (query parameters) or POST with a JSON body {"inputs": {...}}
Schema: https://tttkmbb.com/api/v1/calculators/roas · Markdown: https://tttkmbb.com/business/roas.md · JSON definition: https://tttkmbb.com/business/roas.json
MCP: server https://tttkmbb.com/mcp, tool run_calculator with calculator_id="roas"
OpenAPI operationId: calculate_roas
Freshness: static. Authentication: none. Rate limit: fair use (see rate limits).

Sources

Google Ads Help – About Target ROAS bidding (reference)
Wikipedia – Return on investment (reference)

FAQ

Is a ROAS of 4 good?

Only relative to your margin: with a 25 % gross margin a ROAS of 4 merely breaks even, with a 60 % margin it is very profitable. Compare with break_even_roas.

ROAS vs ROI?

ROAS divides revenue by ad spend only; ROI divides net profit by total investment including product and operating costs, so it is always lower.

Related calculators

Ad Metrics Calculator (CPM, CPC, CTR, CPA) — CPM, CPC, CTR and CPA for the same campaign.
ROI Calculator — Return on investment including all costs.
Margin and Markup Calculator — Gross margin needed as input here.