It depends on your profit margins, but a common rule of thumb is 4× for ecommerce. Brands with thin margins need a higher ROAS to break even, while high-margin businesses can profit at 2–3×.

What's the difference between ROAS and ROI?

ROAS measures revenue against ad spend only. ROI (or POAS — profit on ad spend) factors in product cost and margin, so it reflects actual profit. Use the margin field above to move closer to a true profit view.

Is ROAS calculated before or after tax?

Use revenue excluding taxes (GST/VAT) and your true ad spend including platform fees for the most accurate figure.

Free Tool

ROAS Calculator

Enter your ad spend and the revenue it generated to instantly see your Return on Ad Spend (ROAS), ACoS, and profit. Add your margin to find the ROAS you need to break even.

Your numbers

Revenue from ads

₹

Total sales attributed to the ads.

Ad spend

₹

What you paid the ad platforms.

Gross profit margin (optional)

Optional — unlocks profit & break-even ROAS.

Enter your numbers

Results update instantly as you type.

How to use the roas calculator

ROAS = Revenue from ads ÷ Ad spend

ROAS tells you how many rupees of revenue each rupee of ad spend produced. A 4× ROAS means ₹4 back for every ₹1 spent.

ACoS (Advertising Cost of Sales) is the inverse — your ad spend as a percentage of revenue. Lower is better.

A 'good' ROAS depends entirely on your margins. Add your gross margin to see the break-even ROAS you must beat to actually profit.

Frequently asked questions

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