ROAS Calculator
Enter what you spent and what it returned. You also get the break-even ROAS your margin requires, which is the number most people skip.
ROAS is revenue divided by ad spend. Spend ₹1,00,000 and generate ₹4,50,000 and your ROAS is 4.5x. That part is simple arithmetic, and it is also where most reporting stops, which is why so many accounts look healthy while the business does not.
The number that decides whether an account is actually working is break-even ROAS, and it comes from your gross margin, not from the ad platform. At a 40% margin you keep ₹40 of every ₹100 in revenue, so you need 2.5x just to come out level. At a 20% margin you need 5x. A 4x ROAS is excellent for the first business and a loss for the second, which is why comparing your ROAS to someone else's is meaningless without knowing their margin.
Two things distort the ROAS your dashboards report. First, the platforms each claim conversions they influenced, so adding Meta's reported revenue to Google's reported revenue will overstate reality, sometimes badly. The figure to trust is blended: total revenue divided by total ad spend, taken from your own bank or store data. Second, a Pixel running without the Conversions API typically loses 20 to 30% of attributed conversions, which understates ROAS and makes the algorithm optimise against an incomplete picture.
If your ROAS sits below break-even, the fix is rarely a bid change. In the accounts I audit it is usually one of four things: conversions counting form opens rather than qualified enquiries, budget split across too many campaigns so none of them exits the learning phase, a landing page that promises something different from the ad, or a catalogue feed with missing attributes capping what the algorithm can do. The ROAS playbook works through each of those in the order worth fixing them.
Frequently asked questions
- What is a good ROAS?
- There is no universal figure. A good ROAS is anything comfortably above your break-even ROAS, which is 1 divided by your gross margin. At a 40% margin, break-even is 2.5x and 4x is healthy. At a 20% margin, break-even is 5x and that same 4x loses money. Ignore benchmarks that do not state the margin behind them.
- Why is the ROAS in Meta Ads Manager higher than my actual revenue suggests?
- Meta counts conversions it influenced within your attribution window, including view-through conversions and purchases that would have happened anyway. Google does the same. Adding both platforms together double-counts customers who saw both. Use blended ROAS from your own sales data as the number that governs decisions, and platform ROAS only for comparing campaigns against each other inside the same platform.
- Should I optimise for ROAS or for profit?
- Profit. ROAS is a ratio, and ratios can be improved by shrinking spend, which usually shrinks profit with it. A 6x ROAS on ₹1 lakh of spend produces less gross profit than a 3.5x on ₹5 lakh at the same margin. Use ROAS to spot inefficiency, and total gross profit after ad spend to decide how much to spend.
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