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.
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
- Enter your advertising spend and the revenue attributed to ads.
- Enter your product cost and other variable costs, and the payment fee percentage if any.
- Press Calculate to see your ROAS, break-even ROAS and profit after ads.
- Compare ROAS with break-even ROAS: above it means profit, below it means loss.
How it is calculated
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.
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
Enter ad spend
For the period.
Enter attributed revenue
Prefer delivered revenue for COD.
Add costs and fees
Product and variable costs.
Calculate
See ROAS and break-even.
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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