ROAS calculator

Free · No signup · Updated November 2026 by the DrapifyApp team

How do I calculate ROAS and break-even ROAS?

ROAS = revenue from ads ÷ ad spend. ₹20,000 of sales from ₹5,000 of ads is a 4x ROAS. Break-even ROAS = 1 ÷ gross margin: at a 35% margin you need about 2.86x just to cover the ads. Below that, every sale from ads loses money.

ROAS
4.00x
Break-even ROAS
2.86x
Profit after ads
₹2,000

These ads are paying for themselves.

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How to use it

  1. Enter ad spend and the revenue those ads brought.
  2. Enter your gross margin before ad cost.
  3. Compare your ROAS with the break-even ROAS.

Why break-even ROAS matters

A “good” ROAS depends on your margin. A 3x ROAS is profitable at a 50% margin but loses money at a 25% margin, where break-even is 4x.

Marketplace ads

Amazon and Flipkart ads report ACoS, which is ad spend ÷ ad revenue, the inverse of ROAS. A 25% ACoS equals a 4x ROAS.

Questions

What is a good ROAS?
Anything above your break-even ROAS is profitable. Work that out from your margin first.
How do I convert ACoS to ROAS?
ROAS = 1 ÷ ACoS. An ACoS of 20% is a 5x ROAS.
Should returns count?
Yes. Use revenue after returns, or ads that drive high-return orders will look better than they are.

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