ROAS Calculator — Is Your Ad Spend Actually Paying Off?
Calculate Return on Ad Spend (ROAS) for any campaign. Know your revenue per rupee spent and find the minimum ROAS needed to stay profitable.
ROAS is the first number any paid media manager looks at when opening their ad dashboard. It tells you how many rupees in revenue came back for every rupee you spent on advertising. But knowing your ROAS isn't enough — you need to know your breakeven ROAS to understand if your campaigns are actually profitable. The CalcHub ROAS Calculator handles both.
ROAS Formula
ROAS = Revenue from Ads / Ad Spend × 100 (as a percentage or ratio)If you spent ₹50,000 on Google Ads and attributed ₹2,00,000 in revenue: ROAS = 4x (or 400%)
That means every ₹1 spent brought back ₹4 in revenue. Sounds great — but is it profitable?
ROAS vs ROI: The Critical Difference
ROAS measures revenue efficiency. ROI measures profit efficiency. A 4x ROAS can be unprofitable if your gross margins are thin.
Breakeven ROAS = 1 / Gross Margin %| Gross Margin | Breakeven ROAS |
|---|---|
| 20% | 5x |
| 30% | 3.33x |
| 40% | 2.5x |
| 50% | 2x |
| 70% | 1.43x |
How to Use the Calculator
- Ad spend — total spent in the campaign period
- Revenue attributed to ads — from your ad platform or GA4
- Optional: gross margin % — to calculate profit ROAS and breakeven
- See ROAS, breakeven ROAS, profit from the campaign, and whether you're above or below breakeven
Campaign-Level ROAS Comparison
| Campaign | Ad Spend | Revenue | ROAS | Gross Margin | Profit |
|---|---|---|---|---|---|
| Google Shopping | ₹80,000 | ₹3,20,000 | 4x | 35% | ₹32,000 |
| Facebook Retargeting | ₹30,000 | ₹1,50,000 | 5x | 35% | ₹22,500 |
| Influencer (tracked) | ₹50,000 | ₹1,20,000 | 2.4x | 35% | −₹8,000 |
| Brand Search | ₹20,000 | ₹1,40,000 | 7x | 35% | ₹29,000 |
Attribution Caveats
ROAS from ad platforms is almost always overstated. Platforms (especially Meta) attribute conversions using their own multi-touch model, which frequently double-counts with other channels. Common fixes:
- Compare platform-reported revenue vs actual orders in your CRM or backend
- Use a 7-day click, 1-day view attribution window instead of 28-day view
- Run holdout tests — pause a campaign for 2 weeks and see if real revenue actually drops
What's a good ROAS for e-commerce?
It depends entirely on your margins. A healthy ROAS for an e-commerce business with 40% gross margins is 3–5x (well above the 2.5x breakeven). For a business with 15% margins, you'd need 7x+ ROAS to make paid acquisition worthwhile. Start with your breakeven ROAS and work backward to a target.
Should I optimize for ROAS or CPA?
ROAS is better for products with variable order values — high ROAS can be driven by a few large orders. CPA (cost per acquisition) is more useful for fixed-price products or subscription sign-ups where all customers are roughly equal in value. If LTV varies significantly by product, ROAS against high-margin products is the most useful signal.
Why does Meta show higher ROAS than Google Analytics?
Meta's default attribution includes view-through conversions — people who saw (but didn't click) your ad and converted within 28 days. Many of those would have converted anyway. Google Analytics uses last-click by default, undercounting Meta. Neither is fully accurate; the truth is in the middle.