ROAS Calculator

Return on Ad Spend plus Profit-on-Ad-Spend (POAS). Traditional ROAS ignores your margin, which is why accounts look profitable but drain cash.

Free forever. No signup. Runs in your browser.

Your numbers

Ad spend

Revenue attributed to ads

Gross profit margin (%)

After COGS. E-commerce DTC typically 40-60%, SaaS 70-85%

Results

ROAS

4.00x

POAS (profit on ad spend)

1.60x

Below 1x means ads destroy cash after margin

Break-even ROAS

2.50x

ROAS needed to cover ad spend at your margin

Verdict

Healthy

How this calculates

ROAS = revenue divided by ad spend. A 4x ROAS sounds great until you factor in margin. If your gross margin is 40%, break-even ROAS is 2.5x. At 4x, your real profit on ad spend is 1.6x (POAS). Most e-commerce accounts aiming for 3x ROAS are actually losing cash once you subtract COGS, platform fees, and fulfillment.