thecalcuROAS Calculator
1%100%

(Revenue − Cost of Goods) ÷ Revenue

Return on Ad Spend

4×
Profitable

Break-even ROAS is 2.5× at 40% margin.

Breakeven ROAS
2.5×
Minimum to cover ad spend
Net Profit
$1.2k
After ad spend + COGS
1
ROAS formula
ROAS = Revenue ÷ Ad Spend = $8000 ÷ $2000 = 4×
2
Breakeven ROAS
Breakeven ROAS = 1 ÷ Gross Margin = 1 ÷ 0.4 = 2.5× (must exceed this to be profitable)
3
Net profit
Net Profit = (Revenue × Margin) − Ad Spend = ($8000 × 40%) − $2000 = $1200
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