FREE TOOL
ROAS calculator
Enter your campaign’s spend, clicks, conversions and revenue. See ROAS, the break-even ROAS for your margin, and CPM, CPC, CTR and the other core metrics on one screen.
Campaign figures
Fill in what you know; results show for everything your figures allow.
Sales, leads or calls; whichever you track.
Total sales value of the conversions (excluding VAT).
What is left of a sale after the cost of goods. Needed for break-even ROAS.
ROAS
4x
Every £1 spent brought in £4.00.
The ads are profitable: ROAS is above break-even.
- CPMCost per thousand impressions
- £8.00
- CPCCost per click
- £0.40
- CTRClicks ÷ impressions
- 2%
- Conversion rateConversions ÷ clicks
- 2%
- Cost per conversion (CPA)Spend ÷ conversions
- £20.00
- Revenue per conversionRevenue ÷ conversions
- £80.00
- ROASRevenue ÷ spend
- 4x · 400%
- Break-even ROAS1 ÷ gross margin
- 2.5x
- Gross profit after adsRevenue × margin − spend
- £1,200.00
- Highest CPA that still makes a profitRevenue per conversion × margin
- £32.00
The calculation runs in your browser; nothing you enter is sent anywhere.
A high ROAS is not the same as profit
A 4x ROAS leaves a profit for a shop selling at a 40 percent margin and a loss for one selling at 20 percent. What the ads have to cover is not revenue but the gross profit left after the cost of goods. Know your break-even ROAS before you judge a campaign.
Work out your margin per product with the profit margin calculator, or see how we run accounts on our Google Ads management page.
Common questions
ROAS (return on ad spend) is the revenue from ads divided by what the ads cost: revenue ÷ spend. A campaign that spends £2,000 and brings in £8,000 of sales has a ROAS of 4x, or 400 percent; every £1 spent brought in £4.
There is no single number; the threshold depends on your margin. Break-even ROAS is 1 ÷ gross margin: 2.5x for a product with a 40 percent margin, 5x for one with 20 percent. Above that, the ads leave gross profit; below it, they lose money even when they sell.
ROAS compares revenue with spend and ignores costs. ROI compares profit with the investment: (profit − investment) ÷ investment. A campaign with a high ROAS can still leave a poor ROI when product costs are high, which is why the calculator also shows break-even ROAS and gross profit after ads.
CPM is the cost of a thousand impressions: spend ÷ impressions × 1,000. It is used for awareness campaigns and to compare what different audiences cost to reach.
CPC (cost per click) is the average cost of a click: spend ÷ clicks. CTR (click-through rate) is the share of people who saw the ad and clicked: clicks ÷ impressions. A low CTR often means the ad does not match the search or the audience closely enough.
Yes. For lead generation, enter conversions instead of revenue; the calculator works out CTR, conversion rate and cost per conversion. ROAS needs the revenue the ads brought in.
LET'S TALK
Let’s see whether your ads actually leave a profit.
On the first call we look at where the ROAS in your Google Ads and Meta accounts sits against your margin, and which campaign to prioritise.
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