Free with a Skopx account
ROAS Calculator: return on ad spend and break even
ROAS Calculator
How it works
From spend and revenue to your return.
Enter spend and revenue
Type what the ads cost and the revenue they brought in, for the same days and the same campaigns.
Add your margin
This is optional. With it, the calculator works out the ROAS at which the ads cover their own cost.
Compare the two
The result says whether your ROAS is above or below your break-even number.
How to read a ROAS
Three things to know before you judge a campaign.
Revenue is not profit
A ROAS of 2 means two dollars of sales for each dollar of ads, not two dollars of profit. Compare it with your break-even number.
Know your break-even number
Break-even ROAS is 1 divided by your margin. At a 25% margin you need a ROAS of 4 to cover the ads.
Use the same days for both
Take spend and revenue from the same days and the same campaigns. Sales that arrive later are missing from the number.
Questions
What is ROAS?
ROAS means return on ad spend: the revenue your ads brought in divided by what the ads cost. A ROAS of 4 means $4 of revenue for every $1 spent.
What is break-even ROAS?
It is the ROAS at which the profit on the sales just covers the ad spend. It is 1 divided by your profit margin, so a 40% margin breaks even at 2.5.
What does ROAS Calculator cost?
ROAS Calculator is free with a Skopx account. You sign in before the calculator appears, and making an account costs nothing.
What happens to the numbers I type?
They stay in your browser. The calculator does the sum on your device and sends nothing you type to Skopx.
What can it not do?
It does not know which sales your ads caused. It works from the revenue you enter, and it leaves out any cost you have not put into your margin.
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