Tools Free · Calculators
Is the campaign paying off?
Work out return on ad spend, true marketing ROI after margin and costs, and the ROAS you need to hit a profit target. Built for founders and marketers who sign off ad budgets.
Inputs
Agency, creative, tools.
ROAS
Profitable4x
Every $1 of ad spend returns $4.00 in revenue. After margin and all campaign costs, the campaign makes $12,800 profit.
- Marketing ROI
- 80% (Gross profit minus costs) / costs
- ROAS %
- 400%
- Gross profit
- $28,800
- Net profit
- $12,800 After ad spend and other costs
- Break-even ROAS
- 1.67x 2.22x including other costs
- Cost per $1 revenue
- $0.33
ROAS needed for target ROI
| Target ROI | ROAS needed | Revenue needed |
|---|---|---|
| 0% (break even) | 2.22x | $26,667 |
| 50% | 3.33x | $40,000 |
| 100% | 4.44x | $53,333 |
| 200% | 6.67x | $80,000 |
Uses your total campaign cost and gross margin. Most ecommerce brands aim for 3x to 4x ROAS; high-margin SaaS can grow well at 2x.
Get new tools first
Optional. New free tools and growth notes, roughly once a month.
How to use it
- Enter campaign revenue, ad spend and any agency, creative or tool costs.
- Set your gross margin so profit reflects what you actually keep.
- Compare your ROAS with the break-even line and the target ROI table.
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Questions founders ask
What is a good ROAS?
It depends on your margin. Break-even ROAS is 1 divided by gross margin, so a 50% margin business needs 2x just to cover ad spend. Most ecommerce brands aim for 3x to 4x, while SaaS with 75% or higher margins can scale profitably at 2x to 3x once lifetime value is counted.
What is the difference between ROAS and ROI?
ROAS is revenue divided by ad spend and ignores every other cost. Marketing ROI subtracts all campaign costs from gross profit and divides by those costs. A 4x ROAS can still be a negative ROI if margins are thin or agency and creative costs are high.
How do I calculate break-even ROAS?
Divide 1 by your gross margin as a decimal. At a 60% margin, break-even ROAS is 1 / 0.6, or about 1.67x. If you also pay agency or creative fees, the true break-even is total campaign cost divided by ad spend times margin.