Calculator

ROAS calculator

Enter the revenue your ads brought in and what they cost. Add your margin to see whether that ROAS actually makes money.

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Example numbers. Replace them with your own.

Revenue from ads ($)Ad spend ($)

Break-even ROAS

Margin before ad spend (%)What's left of each sale after product cost, shipping and fees, before any ads.Profit to keep after ads (%)Optional. A share of revenue you want left once the ads are paid for.

ROAS

4.00

That's $4.00 in revenue for every $1 of ad spend (400%). On Amazon the same result shows as an ACoS of 25%.

Break-even ROAS

2.50

At a 40% margin, ads need to bring in $2.50 for every $1 they cost before they make any money.

You're above break-even. After paying for the ads, this revenue leaves about $750.00 in profit, or $0.60 for every $1 of ad spend.

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Automation logic you can read, adjust and preview on your account. It's saved switched off, and runs once you turn it on.

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Dynamic Bid Management

Moves each bid toward your Target ACOS in small steps, with a cooldown between changes.

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How to calculate ROAS

1ROAS (return on ad spend) is the revenue your ads brought in divided by what you spent on them. $5,000 of revenue from $1,250 of ad spend is a ROAS of 4, often written 4x or 400%.
2Use the revenue your ad platform credits to the ads, for the same dates as the spend. Mixing a month of revenue with three weeks of spend is the most common way to get a ROAS that looks better than it is.

FAQ

What is a break-even ROAS?

Break-even ROAS is the ROAS where the ads exactly pay for themselves. To get it, divide 100 by your margin before ad spend. At a 40% margin each $1 of revenue leaves 40 cents, so you need $2.50 of revenue per $1 of ads (a ROAS of 2.5) to break even. At 25% you need 4.

If you don't know your margin, the breakeven ACoS calculator works it out from your price, product cost and fees.

What's a good ROAS?

One that clears your break-even by enough to leave the profit you want. That's why the same ROAS can be great for one business and a loss for another. A ROAS of 3 makes money at a 50% margin and loses it at 30%.

Fill in "Profit to keep after ads" above to turn a profit goal into the ROAS you need. Industry averages get quoted a lot, but your margin decides what works for you.

Selling on Amazon? What is a good ROAS on Amazon goes through the factors that move it there.

ROAS and ACoS on Amazon

Amazon Ads reports ACoS (advertising cost of sales), which is ROAS upside down (ad spend divided by sales). A ROAS of 4 is an ACoS of 25%. The calculator shows both, and the ACoS to ROAS calculator converts a target from one to the other.

On Sponsored Products, sellers get credit for sales within 7 days of a click (14 days for vendors), so recent days can look weaker until those sales come in.

Once you know the ACoS you can afford, the CPC calculator turns it into a bid. Merch Jar’s Dynamic Bid Management template moves each bid toward that target every day, in small steps. It’s saved switched off, and runs once you turn it on.