Free Ecommerce Tool

ROAS Calculator

ROAS (Return on Ad Spend) is revenue divided by ad spend. A ROAS of 4× means every £1 spent on ads returned £4 in revenue. Enter your numbers below to see your ROAS, break-even ROAS, and real profit after gross margin.

Quick answer

ROAS (Return on Ad Spend) is revenue divided by ad spend. A ROAS of 4× means every £1 spent on ads returned £4 in revenue. Enter your numbers below to see your ROAS, break-even ROAS, and real profit after gross margin.

Your numbers
Results
Updates live
ROAS
4.00×
Revenue ÷ ad spend
Break-even ROAS
1.67×
Below this you lose money on gross profit alone
Profit after ads
£7,000
Gross profit − ad spend
POAS (Profit on Ad Spend)
1.40×
Profit ÷ ad spend
Formula
ROAS = Revenue ÷ Ad Spend
Example: £20,000 revenue from £5,000 ad spend → ROAS = 20,000 ÷ 5,000 = 4.0×. With 60% gross margin, gross profit is £12,000 and profit after ads is £7,000.
Why it matters
  • ROAS is the fastest way to compare campaign efficiency across Google, Meta, TikTok and Klaviyo.
  • A 'good' ROAS is not universal - it depends entirely on your gross margin.
  • Judging ads on ROAS alone hides losses when margin is thin or refund rates are high.
How to improve it
  • Raise AOV with bundles, thresholds for free shipping, and post-purchase upsells.
  • Kill or cap creatives that spend heavily under break-even ROAS for 7+ days.
  • Improve landing-page conversion - same traffic, more revenue, better ROAS.
  • Lower CPCs with tighter audiences, negative keywords, and better creative hooks.
  • Fix refund and cancellation leaks - they inflate revenue-based ROAS.
FAQ

ROAS Calculator - questions founders ask

There is no universal number. A ROAS above your break-even ROAS (1 ÷ gross margin) is profitable. Most Shopify DTC brands aim for 3-5× on prospecting and 6-10× on retargeting, but a fashion brand at 45% margin and a supplement brand at 75% margin have very different targets.

Next step

Want the operator team behind these numbers?

BeingEcom runs Paid Ads & Performance Marketing for UK Shopify and WooCommerce brands. Book a free strategy call and we'll model the same numbers against your real store.