ROAS Calculator
Calculate your Return on Ad Spend to see how much revenue you're generating for every dollar spent on advertising.
What is ROAS?
ROAS (Return on Ad Spend) measures how much revenue you generate for every dollar spent on advertising. It's the inverse of ACoS and shows your advertising efficiency from a revenue perspective.
ROAS = Ad Revenue / Ad Spend
ROAS vs ACoS
ROAS = 4.0x
is the same asACoS = 25%
Both metrics show the same efficiency from different perspectives.
ROAS Perspective
"For every $1 I spend, I get $4 back"
ACoS Perspective
"I spend 25% of my revenue on ads"
How to Interpret Your ROAS
4.0x or higher - Excellent
Outstanding performance. You're generating $4+ for every dollar spent.
3.0x - 4.0x - Good
Solid returns. Most successful Amazon campaigns fall in this range.
2.0x - 3.0x - Fair
Needs optimization. You should be able to improve these returns.
Below 2.0x - Needs Improvement
Your ads are likely unprofitable. Immediate optimization required.
💡 Pro Tip: Know Your Break-even ROAS
Your break-even ROAS depends on your profit margins. If your product has a 40% profit margin, you need at least 2.5x ROAS to break even (1 / 0.40 = 2.5).
Break-even ROAS = 1 / Profit Margin
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