Free Return on Ad Spend (ROAS) Calculator
ROAS Calculator
Enter your Ad Spend and the Revenue from Ad Spend into the simple ROAS calculator. The formula is simple (Revenue from Ad Spend / Ad Spend), but understanding the results isn't as straightforward. To stay safe, aim for a ROAS of 800% or higher. If your ROAS drops below 400%, you're likely losing money once all other costs are considered.
Enter your ad spend and revenue to see your ROAS.
Your target
To hit a healthy 800% ROAS on — of ad spend, you'd need about
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in revenue. Uncheck the box above and enter your revenue to score your actual ROAS.
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Your Return on Ad Spend
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▲ Target 800%
How to read your ROAS
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Under 400%
Below break-even
Under 400%, ad spend is usually losing money once product, shipping and overhead come out.
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400% to 799%
Thin margin
Between 400% and 799%. The campaigns pay for themselves, with little room for a bad month.
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800% and above
Healthy
Over 800%. Ad spend is compounding rather than just covering itself.
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Enter your ad spend
Type how much you spend on ads in a typical month.
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Add your ad revenue
Enter the revenue those ads generated, or check the box if you don't know it yet.
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See your ROAS instantly
Get a live ROAS score against the 800% benchmark, plus estimated profit if you add your margin.
How this is calculated
Return on ad spend is revenue attributed to ads divided by what you spent to get it, expressed as a percentage. A ROAS of 800% means eight dollars back for every dollar in.
The 800% benchmark is a directional read for eCommerce, not a universal rule. It exists because gross ROAS ignores everything except media cost: once product cost, shipping, payment fees and overhead come out, a campaign at 400% is usually underwater. Where a profit margin is supplied, the estimated profit line applies it to ad revenue and subtracts the spend.
Where these bands come from
The 800% and 400% thresholds are Shero's own directional reads from client work, not a published industry benchmark, and there is no citation to give for them. They are set where they are because gross ROAS counts only media cost: a campaign returning 4x its ad spend has usually spent the rest on product, shipping, payment fees and overhead before anything reaches the bottom line.
Your real break-even ROAS is a function of your own contribution margin, so treat the bands as a starting point rather than a target. If you know your margin, the estimated profit line above is the more meaningful number: it is arithmetic on figures you supplied, not a heuristic.
Attribution caveat: revenue from ads is whatever your ad platform reports, and platforms routinely claim overlapping credit for the same order. A ROAS built on platform-reported revenue reads high against what your store actually banked.
Need more than a free tool ?
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