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Free ROAS Calculator for Meta & TikTok Ads

Enter what you spent on ads and the revenue those ads brought in. ROAS is revenue divided by ad spend.

The ROAS formula

ROAS = revenue from ads ÷ ad spend. $12,000 of revenue on $4,000 of spend is a ROAS of 3.0 (or 300%): every dollar of ads brought back three dollars of sales.

What is a good ROAS?

One that is above your break-even ROAS, which depends on your margin: a product with a 60% gross margin breaks even at 1.67, one with a 25% margin needs 4.0. Compute yours with the break-even ROAS calculator before judging a campaign.

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Questions

What does ROAS mean?

Return on ad spend: the revenue your ads generated divided by what they cost.

What is the difference between ROAS and ROI?

ROAS compares revenue to ad spend only. ROI compares profit to all costs, including the product, shipping and fees.

Is a ROAS of 2 good?

Only if your gross margin is above 50%. At a 40% margin, a ROAS of 2 loses money: break-even is 2.5.

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