Good result
A good ad result gives you a clear spend threshold: actual ROAS should beat break-even, and ACOS should stay below the profit-safe limit.
Ads Calculators
ROAS Calculator
Measure whether an ad campaign is actually profitable after revenue, ad spend, product cost, shipping, and fees.
5 editable inputs3 decision outputsShareable result link
Use this calculator to
- ROAS
- Ad cost as % of revenue
- Profit after ads
Change the inputs and the result updates instantly.
Loading calculator...
Decision snapshot
Use this roas calculator before you quote, publish, discount, or increase spend.
The calculator turns the messy parts of the decision into a visible estimate: what goes in, what comes out, and which assumptions need a second look before you act.
Primary term: roas calculatorVerified 2026-07-01
Best for
Measure whether an ad campaign is actually profitable after revenue, ad spend, product cost, shipping, and fees.
Inputs used
Revenue from ads, Ad spend, Product cost, Shipping and fulfillment, Platform or payment fees.
Outputs to check
ROAS, Ad cost as % of revenue, Profit after ads.
Formula
ROAS formula
ROAS by itself is a revenue efficiency metric. The profit line tells you whether that ROAS is good enough for your cost structure.
Calculation path
ROAS = revenue from ads / ad spend
ad cost % = ad spend / revenue from ads
profit after ads = revenue - ad spend - product cost - shipping - feesHow to use this calculator
- 01Enter the revenue attributed to the campaign.
- 02Enter ad spend for the same time period and attribution window.
- 03Add product cost, fulfillment, and fees so the result shows profit, not only revenue efficiency.
- 04Compare the ROAS output with your break-even ROAS before scaling the campaign.
Worked example
$300 spend, $1,200 revenue
A campaign generated $1,200 in sales from $300 in ad spend. Product, shipping, and fee costs total $606.
| ROAS | 4x |
| Ad cost percentage | 25% |
| Contribution before ads | $594.00 |
| Profit after ads | $294.00 |
What the result means
A higher ROAS is only useful when it leaves enough contribution profit after costs. A 4x ROAS can be excellent on a high-margin product and weak on a low-margin one.
Decision guidance
How to read the result
The roas calculator is most useful when the output is tied to a next action. Use it to decide whether the price, fee load, margin, or ad target is strong enough before you publish, promote, or scale the offer.
Check before acting
Do not optimize campaigns against revenue alone. Paid traffic can look efficient while silently consuming the unit margin.
Next decision
Use the threshold to set campaign targets, pause unprofitable ad sets, or improve price, conversion rate, COGS, and shipping before adding spend.
Before you use the number
Confirm Revenue from ads, Ad spend, Product cost, and Shipping and fulfillment match the exact sale, product, listing, or campaign you are evaluating.
Use ROAS, Ad cost as % of revenue, and Profit after ads as a decision threshold, not just a one-off math answer.
Compare the result with your real profit target, cash-flow needs, and customer willingness to pay.
Re-run the calculator when fees, shipping costs, ad costs, materials, labor rates, or marketplace rules change.
Open the related ads calculators if the next decision involves another fee, platform, price, or ad-spend step.
Ad math improves when the product margin, platform fees, shipping, refunds, and target profit buffer reflect the actual offer being advertised.
Use this calculator when
Use this page when your main question is roas calculator. It is part of the ads calculators workflow, so the best next step is often one of the nearby tools below.
Methodology
How this calculator is built
The ROAS Calculator is designed as a decision-support calculator, not a generic arithmetic shortcut. It keeps the formula, assumptions, example, source notes, and next-step guidance visible so the number can be checked before it affects a price, listing, or campaign.
Formula-led
This page calculates ROAS, Ad cost as % of revenue, and Profit after ads from Revenue from ads, Ad spend, Product cost, Shipping and fulfillment, and Platform or payment fees. The formula is shown before the example so you can audit the math instead of trusting a black box.
Decision-first
The result is framed as a planning threshold for roas calculator, with assumptions, common mistakes, and related next-step calculators on the same page.
Review-triggered
Source-sensitive rates are listed below and should be rechecked after platform fee, payment, shipping, tax, or ad-policy changes.
Use the output as an estimate. Marketplace fees, processor rules, taxes, discounts, refunds, currency conversion, and fulfillment costs can change the final result. See the full calculator methodology for the review process and known limits.
Assumptions
- Revenue and ad spend use the same attribution window.
- Costs are entered for the sales generated by the campaign.
- The calculator does not include returns, taxes, subscriptions, agency fees, or lifetime value.
Common mistakes
Judging campaigns by ROAS without checking profit.
Mixing seven-day revenue with one-day ad spend.
Leaving shipping, payment fees, or COGS out of the decision.
FAQ
Frequently asked questions
Short answers for the edge cases people usually check before they trust the calculator result.
What is a good ROAS?
A good ROAS is one that clears your own break-even threshold and leaves enough profit for the business. There is no universal number.
Why does the calculator ask for costs?
Revenue divided by ad spend does not show profit. Costs reveal whether the campaign is creating contribution profit.
Should I optimize for ROAS or profit?
Use ROAS to monitor efficiency, but make scaling decisions from profit, cash flow, and contribution margin.
Sources
References used for this calculator
These links help check the rates or rules behind the estimate. For the full review process, see the methodology.
Google Ads Help: About Target ROAS bidding
Google's documentation on setting return-on-ad-spend targets for Search and Shopping campaigns.
Amazon Ads: Advertising cost of sales (ACOS)
Amazon Ads guidance on ACOS, ROAS, and measuring sponsored-ad profitability.