ROAS Calculator
Enter your revenue and ad spend — get your ROAS, MER, and break-even ROAS instantly. Add your gross margin to see whether your ads are actually making money.
How ROAS is calculated
Spend $1,000 on ads that drive $3,500 in revenue → 3.5× ROAS (sometimes written 350%). Simple — the nuance is in which revenue you count:
- Platform ROAS — what Meta/Google report, based on their own attribution. Every platform takes credit generously, so the sum of platform ROAS usually overstates reality.
- Blended ROAS (MER) — total store revenue ÷ total ad spend, all platforms. Can't be gamed by attribution. This is the number that has to work for the business to survive.
Break-even ROAS: the number that actually matters
A 3× ROAS sounds great — unless your gross margin is 30%, where break-even is 3.3× and you're losing money on every order. Same ROAS, 70% margin? You're printing. Margins decide everything:
| Gross margin | Break-even ROAS | Healthy target (rough) |
|---|---|---|
| 30% | 3.3× | 4.5×+ |
| 40% | 2.5× | 3.5×+ |
| 50% | 2.0× | 3.0×+ |
| 60% | 1.7× | 2.5×+ |
| 70% | 1.4× | 2.0×+ |
"Healthy target" is a rough rule of thumb leaving room for overhead and profit — not financial advice. Your fixed costs, LTV, and growth goals move it.
What's a good ROAS?
There's no universal number — a good ROAS is comfortably above your break-even. That said, many DTC brands operate at a blended 2–4×: below 2× usually means margins are being burned for growth (fine if deliberate, fatal if not noticed), and above 4–5× often means you're under-spending on growth.
The real skill isn't hitting a number once — it's noticing when it moves. A ROAS that slides from 3.2× to 2.4× over two weeks is a fire alarm most merchants hear too late, because checking five ad dashboards every day is a chore.
FAQ
ROAS vs MER — what's the difference?
ROAS is usually per-channel and uses the platform's attributed revenue. MER (Marketing Efficiency Ratio) is total revenue ÷ total spend — the blended, un-gameable version. Track both; trust MER.
Should I use gross revenue or net?
Be consistent. Most operators use gross sales net of refunds. Whatever you pick, use the same basis every day so the trend is meaningful.
Is 4× ROAS good?
At 40% margin, 4× is solidly profitable (break-even 2.5×). At 20% margin, 4× is below break-even (5×). Enter your margin above — the calculator does this for you.
How often should I check ROAS?
Daily glance, weekly review. The daily glance catches platform breakage and creative fatigue early; the weekly review is where budget decisions happen.
Want these numbers live, without the spreadsheet?
Keel shows your blended ROAS, MER, ad spend, and revenue across Meta, Google, TikTok, Snap & Klaviyo — on desktop and on an iPhone Home Screen widget. Free.
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