ROAS calculator for paid traffic
Enter revenue and ad spend to see your return on ad spend, the ROAS you need to break even, and what the campaign actually made.
Margin is what is left of each sale after product, fulfillment and fees, before ads.
- ROAS as a percentage
- 250%
- Revenue minus ad spend
- $3,000
- Break-even ROAS
- 1.67x
- Profit after margin and ads
- $1,000
Above break-even: every $1 of ads returns $2.50 in revenue.
Affiliates: use commissions. Vendors: use revenue, including upsells.
- Earnings per 100 clicks
- $150
- Break-even cost per click
- $1.50
- Margin per click
- $0.40
- ROAS at that CPC
- 1.36x
You earn more per click than you pay for it.
Add the AOV to see the ROAS this CPA gives you.
- Revenue at that AOV
- $5,000
- ROAS
- 2.50x
- AOV left after the CPA
- $75.00
Each customer costs $50.00 in ads and brings $125.00 in revenue.
The ROAS formula, and two more
Three ratios run most paid traffic decisions. Each one is simple division; the hard part is getting the real revenue.
ROAS = revenue ÷ ad spend
$5,000 from $2,000 of ads is 2.5x. Break-even ROAS is 1 ÷ gross margin.
EPC = earnings ÷ clicks
$1,800 from 1,200 clicks is $1.50. Pay less than that per click and the click is profitable.
CPA = ad spend ÷ conversions
$2,000 for 40 sales is $50. Compare it with your AOV and margin.
What a good ROAS looks like
A good ROAS is any ROAS above your break-even point. That point comes from your margin, not from an industry average.
- 80% margin: break-even ROAS 1.25x
- 60% margin: break-even ROAS 1.67x
- 40% margin: break-even ROAS 2.5x
- 25% margin: break-even ROAS 4x
- ROAS
- Revenue ÷ ad spend
- Break-even ROAS
- 1 ÷ gross margin
- ROI
- (Revenue − all costs) ÷ all costs
- EPC
- Earnings ÷ clicks
- CPA
- Ad spend ÷ conversions
- AOV
- Revenue ÷ orders
Your ad manager's ROAS is not your ROAS
Pixels miss upsells, rebills, refunds and cross-device sales. The calculator is only as good as the revenue you give it.
ElasticFunnels ties every order, upsell and rebill to the ad, campaign and page variant that earned it, so ROAS, EPC and CPA come from sales rather than pixel guesses.
ROAS calculator FAQ
How do you calculate ROAS?
Divide the revenue your ads produced by what you spent on them. $5,000 of revenue from $2,000 of ad spend is a ROAS of 2.5, often written 2.5x or 250%.
What is a good ROAS?
Any ROAS above your break-even ROAS makes money. Break-even ROAS is 1 divided by your gross margin, so a 40% margin needs a ROAS of 2.5 just to cover the ad spend. There is no universal good number: it depends on your margin, refunds and upsell revenue.
What is the difference between ROAS and ROI?
ROAS compares revenue to ad spend only. ROI compares profit to every cost: product, fulfillment, fees, refunds and ad spend. A campaign can show a healthy ROAS and still lose money once those costs come out.
What is EPC and how is it calculated?
EPC means earnings per click: revenue or commissions divided by the clicks that produced them. If you pay less per click than your EPC, the traffic is profitable before other costs.
How do you calculate CPA?
Divide ad spend by the number of conversions. $2,000 spent for 40 sales is a CPA of $50. Compare it with your average order value and margin to see how much you can afford to pay for a customer.
Why does my ROAS differ from the ad platform's number?
Ad platforms count conversions they can see through their own pixel and attribution window. Upsells, rebills, refunds and sales from other devices are often missing. Tracking every sale back to the ad on your own funnel gives you the real revenue to divide by spend.