ROAS Calculator

What is ROAS?

ROAS stands for return on ad spend — the revenue your ads bring in for every rupee you spend on them. It tells you at a glance whether a campaign is pulling its weight compared with what it costs to run.

Formula: ROAS = Revenue from Ads ÷ Ad Spend. If you spent ₹10,000 on Google or Meta ads and those ads drove ₹40,000 in sales, your ROAS is 4.00x — for every ₹1 you spend, you get ₹4 back.

What is a good ROAS?

There is no universal "good" number, because ROAS only measures revenue, not the profit you actually keep. A business with thin margins needs a far higher ROAS just to avoid losing money, while one with fat margins can stay healthy on a lower figure.

Work out your break-even first: Break-even ROAS = 100 ÷ your profit margin. If your margin is 25% — you keep ₹25 from every ₹100 of sales before ad costs — you need 4x ROAS just to cover your ads. Raise the margin to 50% and the break-even drops to 2x. So instead of chasing a round number, compare your actual ROAS against your own break-even and your past campaigns.

ROAS vs ROI

ROAS looks at the top line; ROI looks at the bottom line. ROAS compares only ad revenue with ad spend, ignoring the cost of the product and everything else. ROI (return on investment) is about the profit left after all costs. A 4x ROAS can still be a losing campaign if your margin is only 10%, which is why this calculator pairs your ROAS with your margin to show the real profit. For most business owners, ROI is the number that actually pays the bills.

How to improve your ROAS

• Cut the placements and keywords that earn below your break-even ROAS — pause anything under the line and move that budget to what already works.
• Raise your average order value with bundles or a minimum-order offer, so revenue climbs faster than ad spend.
• Improve your landing pages so more of the paid traffic converts — speed and a clear, single offer matter most.
• Retarget people who already showed interest; they convert at a far better rate than a cold audience.
• Test new offers and creatives regularly, then double down on the winners and stop funding the losers.