ROAS Calculator
Find out if your Facebook and Instagram ads are actually profitable after accounting for costs.
Understanding ROAS vs True ROAS
Many merchants track ROAS incorrectly. Here's what you need to know:
- ROAS: Revenue / Ad Spend. Simple but misleading.
- True ROAS: Gross Profit / Ad Spend. This accounts for your product costs.
- Break-even ROAS: The minimum ROAS you need to not lose money on ads.
- Profitability: Only True ROAS tells you if you're actually making money.
Example: A 4x ROAS with 50% margins means you're breaking even. You need higher than 4x to profit.