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ROAS Calculator

Return on ad spend (ROAS) tells you how much revenue each rupee of advertising brings in. This calculator also finds your break-even ROAS, the minimum ROAS you need before ads actually make a profit.

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Settings
Advertising and revenue
Costs

Results

Enter your numbers and press Calculate. Your results will appear here.

These results are estimates for planning, based only on the numbers you enter. They are not financial or accounting advice.

How to use this calculator

  1. Enter your advertising spend and the revenue attributed to ads.
  2. Enter your product cost and other variable costs, and the payment fee percentage if any.
  3. Press Calculate to see your ROAS, break-even ROAS and profit after ads.
  4. Compare ROAS with break-even ROAS: above it means profit, below it means loss.

How it is calculated

ROAS = attributed revenue / advertising spend
Contribution before ads = revenue - product and variable costs - fees
Contribution margin = contribution before ads / revenue
Break-even ROAS = 1 / contribution margin
Profit after ads = contribution before ads - advertising spend

Worked example

  • Ad spend PKR 50,000, attributed revenue PKR 180,000: ROAS = 180,000 / 50,000 = 3.6x.
  • Costs PKR 90,000 plus 2% fees (PKR 3,600) leave a contribution of PKR 86,400, a 48.0% margin.
  • Break-even ROAS = 1 / 0.48 = 2.08x.
  • Profit after ads = PKR 86,400 - PKR 50,000 = PKR 36,400. Because 3.6x is above 2.08x, these ads are profitable.

Frequently asked questions

What is ROAS?

ROAS is revenue generated by ads divided by the money spent on those ads. A ROAS of 3 means each rupee of ad spend brought back three rupees of revenue.

What is a good ROAS?

It depends on your margins. A good ROAS is one above your break-even ROAS. A store with thin margins needs a higher ROAS than one with high margins, which is why this tool calculates the break-even point for you.

How is break-even ROAS calculated?

Break-even ROAS is 1 divided by your contribution margin before ads. For example, a 48% margin gives a break-even ROAS of about 2.08x. It assumes your costs move in proportion to revenue.

Why might my break-even ROAS not be available?

If your product and variable costs and fees are equal to or higher than your revenue, the contribution margin is zero or negative. Then no ROAS can cover the loss, and you need to cut costs or raise prices first.

Why can attributed revenue differ from my store revenue?

Ad platforms attribute sales using their own windows and tracking, so they can over- or under-count. Organic sales, returns and cancelled COD orders also change the real picture. Compare with your actual store data.

Should I use order value or delivered revenue for COD?

For cash on delivery, delivered revenue gives a more realistic ROAS because returned orders do not bring in money. Use the revenue that is actually collected where you can.

Is ROAS the same as profit?

No. ROAS only compares revenue with ad spend. Profit also depends on product cost, fees, courier and other costs, which is why this tool shows the profit after ads as well.

About the ROAS Calculator

ROAS (return on ad spend) shows how much revenue each rupee of advertising brings back. On its own it can be misleading: a ROAS of 3 is excellent for a high-margin product and a loss for a thin-margin one. That is why this calculator also finds your break-even ROAS.

Break-even ROAS is the minimum ROAS you need to cover product and variable costs. Any campaign below it loses money, no matter how good the numbers look in Ads Manager.

For COD stores, use delivered revenue rather than ad-platform revenue, because returned orders inflate platform figures.

ROASRevenue from ads divided by ad spend.
Break-even ROAS1 divided by contribution margin.
Contribution marginRevenue minus product and variable costs, as a percentage.
Attributed revenueRevenue the ad platform credits to ads.

Key Terms Explained

ROAS

Revenue from ads divided by ad spend.

Break-even ROAS

1 divided by contribution margin.

Contribution margin

Revenue minus product and variable costs, as a percentage.

Attributed revenue

Revenue the ad platform credits to ads.

POAS

Profit on ad spend, a stricter measure.

CPA

Cost per acquisition or order.

Step-by-Step Guide

  1. Enter ad spend

    For the period.

  2. Enter attributed revenue

    Prefer delivered revenue for COD.

  3. Add costs and fees

    Product and variable costs.

  4. Calculate

    See ROAS and break-even.

  5. Compare

    Above break-even means profit.

Common Mistakes to Avoid

Judging ads by ROAS alone

Compare with break-even.

Using placed COD orders

Returns inflate revenue.

Ignoring fees

Payment and platform fees matter.

Short time windows

Results fluctuate daily.

Trusting attribution blindly

Platforms over- or under-count.

Scaling too fast

ROAS often drops with scale.

Practical Tips

Know break-even before launching

Set targets.

Track weekly

Not just daily.

Improve margins

Lowers break-even ROAS.

Raise order value

Bundles help.

Confirm COD orders

Real revenue.

Test creatives

Biggest lever for ROAS.

Who Uses the ROAS Calculator

E-commerce owners

Judging ad profit.

Media buyers

Setting targets.

Agencies

Client reporting.

Brands

Budget decisions.

More Questions

What is a good ROAS?

Any ROAS above your break-even ROAS is profitable.

Why is my break-even ROAS high?

Thin margins require higher ROAS.

Should I use platform revenue?

For COD, delivered revenue is more accurate.

What is POAS?

Profit on ad spend, which uses profit instead of revenue.

Why Use SoftBar Free Tools

Made in Faisalabad for people and businesses across Pakistan.

Free and fast

No sign-up, works instantly on any phone.

Private

Calculators run in your browser; your numbers are not stored.

Mobile friendly

Big buttons and simple forms for phones.

Built by a software team

The same team that builds POS and business software.

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