Tools/ROAS Calculator

Free Calculator

ROAS Calculator

Return on Ad Spend plus Profit-on-Ad-Spend (POAS). Traditional ROAS ignores your margin, which is why accounts look profitable but drain cash.

Free forever. No signup. Runs in your browser.

Your numbers

After COGS. E-commerce DTC typically 40-60%, SaaS 70-85%

Results

ROAS
4.00x
POAS (profit on ad spend)
1.60x

Below 1x means ads destroy cash after margin

Break-even ROAS
2.50x

ROAS needed to cover ad spend at your margin

Verdict
Healthy

How this calculates

ROAS = revenue divided by ad spend. A 4x ROAS sounds great until you factor in margin. If your gross margin is 40%, break-even ROAS is 2.5x. At 4x, your real profit on ad spend is 1.6x (POAS). Most e-commerce accounts aiming for 3x ROAS are actually losing cash once you subtract COGS, platform fees, and fulfillment.

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