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Ad Spend / ROAS Calculator

Calculate actual ROAS, break-even ROAS, profit after ad spend, target CPA, and required conversion rate for paid campaigns.

Your numbers

Start from an example

Revenue source
$
$
$

Revenue per order. Product cost is applied per order.

$
Target profit margin

Result

Status: in range.Actual ROAS
4×

ROAS of 4× is well above break-even. Scale budget confidently while monitoring marginal ROAS at higher spend levels. Based on 250 orders at $80 average order value.

Break-even ROAS
1.33×
Status: in range.Profit after ad spend
$10,000
Status: in range.ROAS for target margin
1.82×
Target CPA
$44
Status: in range.Profit margin
50.0%

Revenue breakdown

Revenue, COGS, ad spend, and profit.

Revenue
$20,000
COGS
$5,000
Ad spend
$5,000
Profit
$10,000

General business information, not legal, tax or financial advice. The result comes only from your inputs and the published method. How we check our numbers.

How to use it

  1. Enter ad spend, then choose a revenue source: the revenue the ads generated, or the number of conversions. Add the average order value (it sets the order count, so product cost can be applied per order), the product cost per order and your target profit margin.
  2. Read actual ROAS, break-even ROAS, ROAS for target margin, profit after ad spend, profit margin and target CPA. Break-even ROAS is the minimum return needed just to cover cost of goods; below it, every sale loses money once ad spend is counted.
  3. Interpret the ROAS health rating: Excellent means you have headroom to scale, Good means profitable but optimize before scaling, Caution means you're near break-even and should pause scale, Danger means the campaign is destroying value.
  4. Use target CPA as the bidding ceiling in your ad platform. If your actual CPA exceeds the target, reduce bids, tighten targeting, or improve the post-click conversion rate before increasing budget.
  5. Re-run weekly during active campaigns. Track ROAS by ad set and creative — blended ROAS hides underperforming segments that drag down profitable ones. Kill or pause segments below break-even first.

Questions people usually ask

What is ROAS?

ROAS (Return on Ad Spend) = Revenue ÷ Ad Spend. A ROAS of 4× means you earned $4 for every $1 spent on ads. It measures revenue efficiency but does not account for product costs — always check profitability using break-even ROAS alongside it.

What is break-even ROAS?

Break-even ROAS is the minimum ROAS needed to cover cost of goods sold. Formula: 1 ÷ (1 − COGS%). If your product has 50% COGS, break-even ROAS is 2×. Any actual ROAS below this means you're selling at a loss after ad spend.

What is a good ROAS?

Good ROAS depends on your margins. For a product with 40% COGS, break-even ROAS is ~1.67×. A 4× ROAS on that product is excellent. For a product with 80% COGS, break-even ROAS is 5× — a 4× ROAS is losing money.

What is target CPA?

Target CPA (Cost Per Acquisition) is the maximum you can spend to acquire one customer while still hitting your target profit margin. Use it as a bidding ceiling in Google, Meta, or TikTok Ads to avoid over-spending per conversion.

Is this tool free and private?

Yes. AI Biz Hub tools run entirely in your browser with no signup required. Inputs stay local unless you share the URL.

Is this financial advice?

No. Outputs are planning estimates. Ad platform performance varies by audience, creative, and seasonality — validate with actual campaign data.

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Use it from code

The same calculation as a JavaScript module you can import. It runs where you import it, with no request, key or rate limit.

import { compute } from "https://aibizhub.io/engines/ad-spend-roas-calculator.js";

Input and output contract, TypeScript types and the guide for agents.