📈 PPC ROAS Calculator
Calculate Return on Ad Spend, Net Profit & Break-Even for Facebook & Google Ads
What is ROAS and Why Does it Matter?
ROAS (Return on Ad Spend) is the most critical metric for e-commerce advertisers. It tells you exactly how much revenue you earn for every dollar spent on ads. A ROAS of 4x means you make $4 for every $1 spent.
Break-Even ROAS Explained
Many beginners look only at ROAS, but Break-Even ROAS is the real secret. If your profit margin is 20%, your break-even ROAS is 5x (1 / 0.20). If your actual ROAS is below 5x, you are losing money, even if you are making sales!
Example Calculation
If you spend $1,000 on ads and generate $5,000 in revenue:
- ROAS = $5,000 / $1,000 = 5x
- If COGS + Fees = $2,000
- Net Profit = $5,000 - $2,000 - $1,000 = $2,000
What is a good ROAS for Facebook Ads?
A good ROAS for Facebook Ads is typically between 3x and 4x. However, this depends entirely on your profit margins. Always calculate your Break-Even ROAS first.
How do I calculate Break-Even ROAS?
Break-Even ROAS = 1 / Profit Margin %. If your profit margin is 25%, your break-even ROAS is 1 / 0.25 = 4x. You need at least 4x ROAS to not lose money.
Does this calculator include COGS and fees?
Yes! Unlike basic ROAS calculators, this tool factors in your Product Cost (COGS) and Payment Fees to show your TRUE Net Profit, not just revenue.