ROAS Calculator
Calculate Return on Ad Spend (ROAS) and Marketing Efficiency Ratio (MER). Find your break-even ROAS and see if your campaigns are actually profitable.
Part of our Business Calculators collection.
ROAS Calculator
Free online calculator
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For profit ROAS / MER calculation
Results update automatically as you type
How to Use This Calculator
- 1
Enter ad spend and revenue.
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Add COGS for true profit ROAS.
- 3
See ROAS, MER, profit, and break-even.
ROAS Formulas
ROAS = Revenue / Ad Spend MER (Marketing Efficiency Ratio) = (Revenue − COGS) / Ad Spend Break-Even ROAS = (Revenue) / (Revenue − COGS − Ad Spend target) Profit = Revenue − COGS − Ad Spend Benchmark: 4× ROAS is often cited as minimum for profitability.
Example Calculation
Example: $5k spend, $20k revenue, $8k COGS
Inputs
adSpend: 5000revenue: 20000cogs: 8000
Result
ROAS: 4.0× | MER: 2.4× | Profit: $7,000
$20k / $5k = 4.0× ROAS. Profit: $20k − $8k − $5k = $7k.
Frequently Asked Questions
What is a good ROAS?
Depends on margins. A product with 70% gross margin might be profitable at 1.5× ROAS. A product with 30% margins needs 3.5× or higher. Calculate your break-even ROAS based on your actual margins.
ROAS vs MER — what's the difference?
ROAS = Revenue / Ad Spend (doesn't account for product costs). MER = (Revenue − COGS) / Ad Spend — shows if you're actually making money. Use ROAS for channel comparison, MER for true profitability.