ROAS Calculator
A ROAS of "4x" sounds good until you know your margin - a low-margin product needs a much higher ROAS to actually be profitable than a high-margin one does. This calculator compares your actual ROAS against the break-even ROAS your margin requires, so you know whether a campaign is genuinely working or just generating vanity revenue.
What each field means
- Ad Spend
- Total amount spent on the campaign or period you're evaluating.
- Revenue from Ads
- Total revenue directly attributed to that ad spend, from your ads platform's reporting.
- Product Profit Margin
- Your product's profit margin before ad spend is deducted - used to calculate the break-even ROAS, the minimum return the campaign needs to not lose money.
- Other Costs
- Any extra flat cost tied to running this campaign that isn't already inside ad spend - agency fees, campaign tools, creative production. Entered as a total for the period, not per order, since ROAS itself works on campaign totals.
How to use the ROAS Calculator
- Enter total ad spend and the revenue your ads platform attributes to it.
- Add your product's profit margin (before ad spend) - use the Profit Calculator if you're not sure of this number.
- Add any Other Costs tied to this campaign as a flat total, if applicable.
- Compare your ROAS to the break-even ROAS shown - anything above it is adding real profit, not just revenue.
The formula
Frequently asked questions
What is a good ROAS for ecommerce in India?
There's no universal number - it depends entirely on your margin. A product with a 50% margin can be profitable at a 2x ROAS, while a product with a 15% margin needs closer to 6-7x just to break even. Always compare your ROAS to your own break-even ROAS, not a generic benchmark.
How is break-even ROAS calculated?
Break-even ROAS is 100 divided by your profit margin percentage. At a 25% margin, you need a 4x ROAS just to cover ad spend - anything above that is genuine additional profit.
Does ROAS account for returns and marketplace fees?
Not directly - ROAS only compares ad spend to attributed revenue. Feed in a margin figure from the Profit Calculator (which accounts for fees, shipping, and returns) to get a break-even ROAS that reflects your real economics.
Why is Other Costs a flat total here instead of a per-unit field?
Because ROAS and this calculator both work on campaign-level totals - ad spend and attributed revenue for a period, not a single order - so any extra campaign cost (agency fee, tools, creative) is entered the same way: as one flat total for that period.