ROAS calculator
Work out your return on ad spend, your break-even ROAS, and whether an ad is making or losing money.
- Break-even ROAS
- Orders
- Ad cost per order
- Profit after ads
What ROAS means
ROAS is return on ad spend: revenue divided by what you spent on ads. Spend $150, make $390, and your ROAS is 2.6.
Why break-even ROAS matters more
A ROAS of 2.0 sounds good, but whether it is profitable depends on your costs. Break-even ROAS is the selling price divided by what is left after product, shipping, and fees. For a $39 product that lands at $8.30 with 3% fees, about $29.53 is left, so break-even is about 1.3. Above it you are in profit; below it every sale loses money.
How to use the result
- Below break-even: the ad is losing money. Check it against your kill line.
- Between break-even and 2.0: hold the budget and watch for two more days.
- Above 2.0 for three days: a common point to raise the budget by about 20%.
What is a good ROAS for dropshipping?
It depends on your margin. Many sellers want at least 2.0, but the number that matters is how far you are above your own break-even ROAS.
Is ROAS the same as profit?
No. ROAS ignores product cost, shipping, and fees. An ad can show a ROAS above 1 and still lose money.
Related: profit margin calculator · ad test budget calculator · when to kill an ad
Your next product deserves a second opinion.
Check it free in 30 seconds. If it's a No-Go, you just saved your ad budget.