{
  "slug": "roas",
  "title": "ROAS Calculator",
  "heading": "ROAS Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/roas",
  "summary": "Return on ad spend, break-even ROAS, and profit.",
  "description": "A 3x ROAS sounds great until you subtract product cost. Break-even ROAS is simply the inverse of your gross margin — at 40% margin you need 2.5x just to stay level.",
  "formula": "ROAS = Revenue ÷ Ad spend. Break-even ROAS = 1 ÷ Gross margin.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=roas",
  "inputs": [
    {
      "id": "spend",
      "label": "Ad spend",
      "kind": "number",
      "hint": null,
      "default": 5000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "revenue",
      "label": "Revenue attributed",
      "kind": "number",
      "hint": null,
      "default": 21000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "margin",
      "label": "Gross margin",
      "kind": "number",
      "hint": null,
      "default": 45,
      "unit": "%",
      "min": 1,
      "max": 100
    }
  ],
  "outputs": [
    {
      "id": "roas",
      "label": "ROAS",
      "format": "decimal",
      "hint": null,
      "primary": true
    },
    {
      "id": "breakEven",
      "label": "Break-even ROAS",
      "format": "decimal",
      "hint": null,
      "primary": false
    },
    {
      "id": "profit",
      "label": "Profit after ad spend",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "roi",
      "label": "Return on ad investment",
      "format": "percent",
      "hint": null,
      "primary": false
    },
    {
      "id": "verdict",
      "label": "Read",
      "format": "raw",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Ad spend: 5000 $",
      "Revenue attributed: 21000 $",
      "Gross margin: 45 %"
    ],
    "outputs": [
      "ROAS: 4.2",
      "Break-even ROAS: 2.22",
      "Profit after ad spend: $4,450.00",
      "Return on ad investment: 89.0%",
      "Read: Profitable after product cost"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter ad spend ($).",
      "Enter revenue attributed ($).",
      "Enter gross margin (%).",
      "Read your roas on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "spend": 3000,
        "revenue": 12600,
        "margin": 27
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "spend": 5000,
        "revenue": 21000,
        "margin": 45
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "spend": 8000,
        "revenue": 33600,
        "margin": 72
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "How does the roas calculator work?",
      "a": "A 3x ROAS sounds great until you subtract product cost. Break-even ROAS is simply the inverse of your gross margin — at 40% margin you need 2.5x just to stay level. The underlying maths is: ROAS = Revenue ÷ Ad spend. Break-even ROAS = 1 ÷ Gross margin."
    },
    {
      "q": "What do I need to enter?",
      "a": "3 values: ad spend, revenue attributed, and gross margin. Each field starts with a sensible default, so you can change one number at a time and watch the result move."
    },
    {
      "q": "What does the roas result mean?",
      "a": "It is returned as a decimal number and updates live as you edit the inputs, so you can compare two or three versions of a scenario in a few seconds."
    },
    {
      "q": "Is this calculator free, and do I need an account?",
      "a": "Yes, it's free, and no account is required. Nothing you type is stored on our servers — the maths runs entirely in your browser."
    },
    {
      "q": "How accurate is the result?",
      "a": "It applies the standard formula exactly, so the arithmetic is precise. Results are estimates before tax, fees, and inflation unless an input explicitly covers them."
    },
    {
      "q": "Who is this tool for?",
      "a": "It's built for anyone comparing money scenarios before committing — budgeting a payment, sanity-checking a quote, or seeing what a change in rate or term actually costs."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/cpm",
    "https://www.revenuelab.fyi/toolbox/cpc-budget",
    "https://www.revenuelab.fyi/toolbox/cac"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — ROAS Calculator (https://www.revenuelab.fyi/toolbox/roas)"
}