How to calculate ROAS
ROAS (return on ad spend) = revenue from ads ÷ ad spend. Spend $1,000 and make $4,000 and your ROAS is 4x. But ROAS is not profit: after product cost, shipping and fees, what is left — your margin — decides whether the ads pay off.
What is break-even ROAS?
Break-even ROAS = 1 ÷ margin. With a 25% margin you need at least 4x for the ads to pay for themselves; below that you lose money. The calculator works out this threshold from your margin and shows the profit left after ad spend. Read more in what ROAS is, gross ROAS, net ROAS and POAS and how to set an ad budget.