ROAS Calculator: Measure Your Ad Campaign Performance

Calculate your Return on Ad Spend (ROAS) for Facebook Ads, Google Ads, and eCommerce campaigns

What is ROAS (Return on Ad Spend)?

ROAS (Return on Ad Spend) is the key metric for measuring advertising effectiveness in eCommerce and digital marketing. It shows how much revenue you generate for every dollar spent on advertising. For example, a ROAS of 2.0 means you earn $2 for every $1 spent on ads, while a ROAS of 4.0 indicates $4 in revenue per $1 of ad spend.

How to Calculate Break-Even ROAS

Break-even ROAS is crucial for dropshipping and eCommerce businesses. To calculate it, use this formula: Break-even ROAS = 100 / Profit Margin (%). For instance, with a 25% profit margin, your break-even ROAS would be 4.0, meaning you need to generate $4 in revenue for every $1 spent on ads to break even.

What is a Good ROAS for Different Platforms?

Facebook Ads ROAS

For Facebook Ads, a ROAS of 3.0 or higher is generally considered good, though this varies by industry and product price point.

Google Ads ROAS

Google Ads campaigns typically target a ROAS of 4.0 or higher, especially for eCommerce and dropshipping businesses.

Dropshipping ROAS

Due to lower profit margins, dropshipping businesses often need a ROAS of 3.0-4.0 to remain profitable after accounting for product costs, shipping, and other expenses.

Converting Between ROAS and ACOS

ACOS (Advertising Cost of Sale) is the inverse of ROAS expressed as a percentage. To convert: ACOS = (1 / ROAS) × 100%. For example, a ROAS of 4.0 equals an ACOS of 25%.