E-Commerce Tools

Advanced ROAS Calculator

Determine your Return on Ad Spend securely in real-time. Input basic totals or map out your entire conversion funnel.

Direct Totals

$

Total amount billed by ad platforms.

$

Total sales directly attributed to ads.

Funnel MetricsOptional

Inputting metrics here will automatically calculate your Spend and Revenue above.

Traffic Costs

$

Conversion Value

$

Return on Ad Spend

ROAS Ratio

0.00x

Performance Breakdown

Total Revenue:$0.00
Total Ad Spend:-$0.00
Net Profit (from Ads):+$0.00
ROAS Percentage:0.00%

What is a Good ROAS in E-Commerce?

Return on Ad Spend (ROAS) is the most critical metric for media buyers and e-commerce founders. It directly answers the question: "For every dollar I put into the ad machine, how many dollars come back out?"

ROAS = (Revenue from Ads / Total Ad Spend) × 100

The Myth of the "Standard" ROAS

If you search online, you'll often see 3.0x or 4.0x touted as the golden standard for a "good" ROAS. The reality? A good ROAS depends entirely on your profit margins.

If you sell digital software with 95% profit margins, an ROAS of 1.5x is highly profitable. However, if you are dropshipping physical goods with razor-thin 15% net margins, an ROAS of 3.0x might still mean you are losing money on every single sale once you factor in shipping and fulfillment.

Finding Your Break-Even ROAS

Before scaling your Facebook or Google ad budget, you must calculate your Break-Even ROAS. This is the exact multiplier where your ad revenue perfectly covers both the ad spend and the cost of the goods sold.

Break-Even ROAS = 1 / Net Profit Margin (%)

For example, if your net margin is 25%, your Break-Even ROAS is 4.0x (1 / 0.25). This means you must make $4 in ad revenue for every $1 spent just to break even! Anything higher than 4.0x is profit; anything lower is a loss.

Use our free Profit Margin Calculator first to map out your exact net margins, then return here to set your ROAS targets.