Harshana · Growth Lab
← All tools

ROAS calculator

See how much revenue every ₹1 of ad spend brings back, and whether your ads actually make a profit.

What is ROAS?

ROAS (return on ad spend) tells you how much revenue each rupee of advertising brought back. If you spent ₹10,000 on ads and they brought in ₹40,000 of sales, your ROAS is 4x.

The formula

ROAS = revenue from ads ÷ ad spend

Break-even ROAS = 1 ÷ gross margin. With a 40% margin, every ₹1 of revenue leaves ₹0.40 of profit, so you need ₹2.50 of revenue for every ₹1 of ads just to break even.

How to improve ROAS

  • Stop or cut ad sets running below your break-even ROAS for more than two weeks.
  • Send ad traffic to a page that matches the ad's promise.
  • Raise average order value with bundles or a free-shipping threshold.
  • Retarget visitors who added to cart but didn't buy.

Questions people ask

What is a good ROAS?

It depends on your margin. Your ads break even when ROAS equals 1 divided by your gross margin. At a 40% margin, you need a ROAS of at least 2.5x before ads make a profit.

How do I calculate ROAS?

Divide the revenue your ads brought in by what you spent on them. ₹40,000 of revenue from ₹10,000 of ad spend is a ROAS of 4x.

Is ROAS the same as ROI?

No. ROAS uses revenue, while ROI uses profit after all costs. A campaign can have a high ROAS and still lose money if margins are thin.

More free tools: all calculators. Want to know how AI assistants talk about brands? Read the AI Search Study.