How it works
ROAS (Return on Ad Spend) = Revenue ÷ Ad Spend. But your true break-even ROAS depends on your product cost and other costs as a % of revenue — the higher your costs, the higher the ROAS you actually need to turn a profit.
Example
$20,000 ad spend, $80,000 revenue, 35% COGS, 5% other costs → 4.0x ROAS, but break-even ROAS is 1.67x, so this account is genuinely profitable, not just breaking even.
What’s a “good” ROAS by industry?
There is no single good ROAS — it depends on your margin. Use these as a starting reference, then check your own break-even ROAS above.
| Industry | Typical “good” ROAS |
|---|---|
| Ecommerce (general) | 3x–4x+ |
| Fashion / apparel | 4x–6x |
| High-margin supplements / beauty | 2x–3x can be profitable |
| Low-margin / commodity products | 5x+ often needed |
FAQ
What is a good ROAS?
It depends entirely on your margin — use the break-even ROAS this tool gives you, not a generic number.
Is ROAS the same as ROI?
No — ROAS is revenue ÷ spend; ROI factors in your full costs and profit. This calculator bridges the two.
Why is my break-even ROAS so high?
High COGS or thin margins mean you need more return per ad dollar before you’re actually profitable.