ROAS Calculator & Break-Even ROAS

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1Type your own numbers on the left. Everything updates as you type.
2Read the results on the right. The highlighted figure is the one that matters most.
3Copy the link to share these exact numbers, or switch currency at the top.

1. Your unit economics

Selling price per order or average order valueProduct cost what the item costs you

Shipping and packaging per orderPayment fees % of price

Price includes 20% VATTarget profit margin on ad-driven sales, after ads

Website conversion rate for the max CPC figure

2. Check a campaign (optional)

Ad spendRevenue from ads

Break-even ROAS–

Below this, every sale from ads loses money.

Margin per order–

Target ROAS–

To hit your profit margin

Max cost per sale (CPA)–

Max cost per click–

Your ROAS–

Your POAS–

Enter ad spend and revenue to check a campaign against your break-even.

Exchange rates: fallback table dated 2026-10-01. Live rates load from Frankfurter when available.

The ROAS formula

ROAS = revenue from ads ÷ ad spend

ROAS on its own tells you nothing about profit. The number that matters is your break-even ROAS, which depends on how much of each sale you keep.

Break-even ROAS = selling price ÷ margin per order
Margin per order = price (ex VAT) − product cost − shipping − payment fees

Worked example

A UK online store sells a product at £60 including VAT. Stripping VAT leaves £50. The product costs £22, shipping £4 and card fees 2.5% (£1.25). Margin per order is £22.75, or 45.5% of net revenue. Break-even ROAS is £60 ÷ £22.75 = 2.64. A campaign running at 2.0 ROAS looks fine in Ads Manager and loses money on every order. The same shop in Pakistan selling at Rs 15,000 with the same cost structure gets the same break-even, which is why the currency switch changes the figures but not the ratio.

How to use the result

Set your target ROAS in Google Ads (Target ROAS bidding) or Meta (ROAS goal) at or above the target figure, not the break-even. The max cost per sale is the number to give any agency as your CPA target. The max CPC is the most you can bid if your site converts at the rate you entered. Change the conversion rate and you'll see why landing pages matter as much as bids.

FAQ

ROAS & break-even calculator: questions answered.

What is ROAS?

Return on ad spend. It is revenue from ads divided by what you spent on them. A ROAS of 4 (or 4:1, or 400%) means every £1 of ad spend brought in £4 of revenue.

What is the ROAS formula?

ROAS = revenue from ads ÷ ad spend. If you spent £2,000 and the ads produced £9,000 of sales, ROAS is 4.5.

What is break-even ROAS?

The ROAS at which ads neither make nor lose money. It equals 1 ÷ your contribution margin. With a 25% margin after product, shipping and payment costs, you need a ROAS of 4 just to break even.

What is a good ROAS?

It depends entirely on your margins. A 3x ROAS is excellent for a 60% margin business and a loss for a 20% margin one. Compare your ROAS with your break-even figure, not with an industry average.

Should I include VAT?

If you quote prices including VAT, tick the VAT box. The calculator strips 20% UK VAT so your margin is worked out on the money you actually keep. Businesses below the VAT threshold or in other countries can leave it unticked.

What is POAS?

Profit on ad spend. Instead of revenue, it divides the gross profit from ad-driven sales by the spend. It is a better guide than ROAS when products have different margins.

Does ROAS include my agency fee?

Platform ROAS does not. To see the full picture, add the management fee to the spend figure, or use the budget planner, which shows blended cost per sale.

How is this different from ROI?

ROI is profit divided by total cost, expressed as a percentage. ROAS is revenue divided by ad spend only. ROI can be negative; ROAS cannot.

More free tools

ROAS and break-even calculator.

The ROAS formula

Worked example

How to use the result

ROAS & break-even calculator: questions answered.

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