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Calculate your return on ad spend from campaign revenue and advertising costs, or forecast results from your budget and assumptions. See ROAS, CPA, break-even ROAS and estimated contribution profit.
Actual mode calculates from the results you enter. Forecast mode projects from your assumptions, so its numbers are estimates, not guarantees. ROAS measures revenue returned, not profit.
Step by step
The example button loads round numbers labelled Illustrative Scenario; they are not industry averages. Share links include forecast assumptions only, never the actual results you enter.
Formula
ROAS is calculated by dividing the revenue attributed to your ads by what you spent on those ads over the same period. The result is written as a multiple (4x) or a percentage (400%).
ROAS formula
ROAS = attributable revenue ÷ advertising spend
Hypothetical example, not campaign data
A 400% ROAS is not 400% profit or ROI. It says revenue was four times the ad spend, but nothing has been subtracted yet for the cost of what you sold, delivery, fees or overhead. The margin-based measures below show what is actually left.
Keep both inputs consistent: the same currency, the same date range and the same campaigns. A month of spend against a quarter of revenue, or one platform's spend against all store revenue, produces a ROAS that describes nothing real.
Profit floor
Break-even ROAS is the lowest ROAS at which the gross profit from ad-driven sales covers the ad spend. The calculator shows it as soon as you enter a gross margin, in both modes.
Break-even ROAS formula
Break-even ROAS = 1 ÷ gross margin (as a decimal)
Hypothetical example, not campaign data
Below 2.5x in this example, the ads cost more than the gross profit they bring in. Above it, each sale contributes something towards your other costs.
Use the share of revenue left after the direct costs of each sale: product or service cost, packaging, delivery you pay for, payment fees and any marketplace commission. Leave ad spend out, because break-even ROAS is the number ad spend is compared against.
Rent, salaries, software, agency fees, tax and any refunds not already reflected in your margin are not covered. Treat break-even ROAS as the floor at which ads pay for themselves, not the point at which the whole business becomes profitable.
Platforms
The calculation is the same on every platform: attributed revenue ÷ spend. What changes is where the revenue figure comes from and which sales each platform claims. This calculator does not connect to your ad accounts, so you enter the figures yourself.
Meta reports website purchase ROAS as the conversion value of website purchases divided by the amount spent, and may use statistical modelling where some purchase events cannot be counted directly. Reported results depend on the attribution setting, so compare campaigns under the same setting. For hands-on help, see Meta Ads management.
Google Ads shows the same idea as conversion value divided by cost, which only works once your conversion actions have values assigned. The attribution model on each conversion action, data-driven or last click, changes how credit is shared between ad interactions, so check which model a figure uses before comparing it with another source. See Google Ads management for search, Performance Max and Display campaigns.
Decide which revenue you mean: gross sales or revenue after discounts, tax and shipping, and before or after refunds and cancellations. Use the same definition every month. A strong ROAS on orders that are later refunded overstates what the ads actually earned.
Meta, Google and your analytics tool can each claim credit for the same order, so adding platform-reported revenue together usually double-counts it. For a cross-platform view, use your store or CRM as the reference. Label what the revenue represents too: first-order revenue and lifetime customer value produce very different ROAS and should not be mixed in one comparison. When the figures do not reconcile, analytics and conversion tracking is usually the place to start.
Metrics
ROAS shows how much revenue came back for each unit of spend. CPA shows what each result cost. Contribution profit after ads shows what is left once the direct costs of those sales and the ad spend are paid.
Each cost metric names what it divides by. Cost per lead divides spend by leads, cost per acquired customer divides it by paying customers, and cost per purchase divides it by orders. A low cost per lead can still mean an expensive customer when few leads close. A higher conversion rate lowers CPA and raises ROAS at the same spend, which is why conversion rate optimization can matter as much as bidding.
Profit figures are estimates before overhead, salaries, taxes, agency fees, refunds and any other costs not included in your gross margin. Forecasts are projections from your assumptions, not guaranteed or actual campaign results.
FAQ
ROAS (return on ad spend) is the revenue attributed to your advertising divided by what you spent on those ads. A ROAS of 4x means every 1 spent on ads brought in 4 in revenue. It measures revenue, not profit, so read it alongside your margin.
Divide attributed revenue by ad spend, using the same currency and the same date range for both. If ads cost PKR 10,000 and brought in PKR 40,000 of attributed revenue, ROAS is 40,000 ÷ 10,000 = 4x, also written as 400%. Use one attribution source when you compare campaigns, because ad platforms, analytics tools and your store can report different revenue for the same sales.
There is no single good ROAS. It depends on your gross margin, price point and other costs. A useful test is whether ROAS is comfortably above your break-even ROAS: a business with a 70% margin breaks even at about 1.43x, while a business with a 20% margin needs 5x just to cover ad spend.
Break-even ROAS is the ROAS at which gross profit from ad-driven sales exactly covers the ad spend. It equals 1 ÷ gross margin as a decimal: at a 40% margin, 1 ÷ 0.40 = 2.5x. It only covers the costs inside your margin, so overhead, salaries and tax still have to be paid from anything above it.
Not necessarily. At a 40% margin, PKR 40,000 of revenue from PKR 10,000 of spend leaves PKR 6,000 of contribution profit after ads. At a 20% margin, the same 4x ROAS leaves PKR 8,000 of gross profit, which is PKR 2,000 less than the ad spend. Even a positive contribution profit is before overhead and other costs.
Yes. The ROAS formula is the same on every platform. Choose Meta Ads (Facebook and Instagram), Google Search Ads or Google Display Ads, then enter numbers from your reports. The calculator does not connect to your ad accounts, and each platform attributes conversions in its own way, so use figures you trust.
No. The calculator does not currently include any verified benchmark data, so every forecast is built from the assumptions you enter. Choosing an industry or country labels your forecast but does not load local averages. The optional example values are round illustrative numbers, not industry data.
No. The currency only changes how amounts are labelled and formatted. No exchange rates are applied, and choosing a country may suggest a currency without changing any number you entered. Enter every amount in the same currency.
Work backwards from what a customer is worth. Start with your break-even CPA (customer value × gross margin), then choose a budget large enough to buy a meaningful number of clicks, since budget ÷ CPC = clicks. That gives you enough conversions to measure your real conversion rate. Increase spend only when results stay above break-even, and expect costs to change as you scale.
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