See if your ad spend actually makes money — ROAS, ROI and break-even ROAS.
ROAS is revenue per unit of spend. Break-even ROAS accounts for your product margin.
Break-even at —
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ROAS (return on ad spend) is the revenue you earn for every unit of currency spent on advertising — 4× ROAS means 4 in revenue per 1 spent. ROI goes a step further and accounts for product cost, telling you the actual profit. Your break-even ROAS is the point where ad-driven gross profit equals ad spend, and it depends on your margin.
Enter your ad spend, the revenue it generated and your COGS to see ROAS, ROI, net profit, break-even ROAS, and (with conversions) your cost per acquisition.
Enter ad spend and the revenue it generated.
Add your COGS % to account for product cost.
See ROAS, ROI and your break-even ROAS.
Add conversions for cost per acquisition.
Return on ad spend = revenue ÷ ad spend. A ROAS of 4 means you earned 4 in revenue for every 1 spent on ads.
ROAS measures revenue per unit of spend; ROI measures profit, after subtracting product cost (COGS) and the ad spend itself.
It's the ROAS at which ad-driven gross profit just covers ad spend, calculated as 1 ÷ gross margin. Below it, the campaign loses money.
A 4:1 ratio is a common rule of thumb, but the real threshold is your break-even ROAS — a high-margin product can be profitable at a much lower ROAS.