ROAS Calculator
Return on Ad Spend — how much revenue you earn per dollar spent
ROAS Calculator
Your ROAS
—
revenue per $1 of ad spend
Formula
ROAS = Revenue ÷ Ad SpendBreak-Even ROAS Calculator
Find the minimum ROAS you need to be profitable
Break-Even ROAS
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Break-Even ROAS = 1 ÷ Profit MarginROAS vs. ROI — Key Differences
| Aspect | ROAS | ROI |
|---|---|---|
| Measures | Revenue per $1 spent | Net profit as % of spend |
| Includes cost of goods | No | Yes |
| 4x means | $4 revenue per $1 | $3 profit per $1 (if 25% margin) |
| Best for | Channel efficiency | True profitability |
2026 Benchmarks
Sources: 2026 Gupta Media Index, WordStream Benchmark Report.
What is a good ROAS in 2026?
The 2026 e-commerce average is 2.87x. A 4x ROAS is the widely-cited minimum for businesses with 25% margins. B2B SaaS targets 5–8x. Use the break-even calculator to find your specific profitability threshold based on your margins.
Frequently Asked Questions
A good ROAS depends on your profit margins. The widely-cited 4:1 rule (earn $4 for every $1 spent) applies to businesses with ~25% margins. For e-commerce, the 2026 average is 2.87x across platforms. B2B SaaS typically targets 5–8x. A ROAS above your break-even threshold — calculated as 1 ÷ profit margin — is a profitable campaign.
Break-even ROAS = 1 ÷ Profit Margin. If your product has a 25% profit margin, you need at least 4x ROAS to break even. At 20% margin, you need 5x. Use the break-even calculator below to find your specific threshold.
ROAS measures revenue generated per dollar of ad spend (e.g. 4x = $4 revenue per $1 spent). ROI measures net profit as a percentage of total cost, factoring in cost of goods. A 4x ROAS with 25% margins = 0% ROI (break-even). ROAS is a channel efficiency metric; ROI is a profitability metric.
Declining ROAS is commonly caused by: increased competition bidding up CPMs/CPCs, creative fatigue (audiences see the same ad too often), iOS privacy changes reducing attribution accuracy, seasonal demand shifts, or budget scaling that moves beyond your most efficient audience segments.