ROAS Calculator

ROAS — return on ad spend — is the first number to check on any paid campaign: revenue attributable to the ads divided by what the ads cost. A ROAS of 4.5x means every rupee spent on advertising brought back ₹4.50 in revenue. Enter your spend and revenue and this calculator returns the ratio, the equivalent percentage, and the net revenue left after the ad bill, with a verdict against common benchmarks.

Reading the number takes one crucial caveat: ROAS measures revenue, not profit. Your true break-even ROAS depends on your margins — a business with 50% gross margin breaks even at 2x (half of every revenue rupee is product cost), while a 25%-margin business needs 4x just to stand still. That's why a 3x campaign can be excellent for a software product and a loss-maker for low-margin electronics. Compute your own threshold as 1 divided by gross margin, and judge campaigns against that rather than against generic benchmarks. Below 1x is unambiguous in any business: the ads return less than they cost.

Two habits make ROAS numbers honest. Measure at the campaign level, not just the account level — a strong average often hides one stellar campaign subsidising several losers, and reallocating budget between them is the fastest optimization available. And be consistent about attribution: platforms tend to claim generous credit for conversions, so comparing platform-reported ROAS against revenue in your own analytics keeps the number grounded. Track ROAS weekly alongside CPM and CPC (the cost-side metrics in the CPM calculator next door) and you have the core dashboard of paid marketing.