Is your ad campaign actually making money?
ROAS shows the sales your ads brought in. GROAS shows the profit you kept. Enter your numbers to see both.
What if you changed the discount or added a cross-sell? PRO
See your GROAS at every combination of discount and cross-sell rate, so you know exactly how far you can push a promotion.
Find the discount you can afford and the cross-sell rate that wins your profit back.
Get the Pro versionGet the full ROAS vs. GROAS Calculator Pro
Everything in this free version, plus the tools to compare campaigns and plan your ad spend with confidence.
- Compare up to 6 campaignsRank them side by side by real profit, not revenue.
- Funnel-stage goalsJudge cold, retargeting, and past-customer campaigns by the right bar.
- Cross-sells and upsellsSee how add-ons win back the profit a discount gives away.
- 12-month repeat purchasesFind out if a losing first order pays off over time.
- What-If gridTest every discount and cross-sell combination at once.
- Spreadsheet version + chartExcel and Google Sheets file, plus the break-even ROAS chart.
Made by Reagan T. Pollack, author of No Startup Left Behind. reaganpollack.com
Disclaimer: This calculator is provided for general educational and informational purposes only and is not financial, accounting, tax, or legal advice. Results are estimates based solely on the numbers you enter and may contain errors or inaccuracies. No guarantee is made as to the accuracy, completeness, or reliability of any calculation. Reagan T. Pollack is not liable for any losses, damages, or decisions resulting from the use of this calculator or reliance on its results. Consult a qualified professional before making business or financial decisions.
What this ROAS calculator shows you
Return on ad spend (ROAS) measures how much revenue your ads bring in for every dollar you spend: revenue ÷ ad spend. It’s the most common way to judge ad performance, but it only counts sales, not profit. A campaign can show a “good” ROAS and still lose money.
That’s why this calculator also shows GROAS, or gross margin return on ad spend: gross profit ÷ ad spend. A GROAS of 1.0 means your ads paid for themselves. Anything below 1.0 means they cost more than they earned.
Why a good ROAS can hide a loss
Say you sell a $100 product that costs $70 to make, and you spend $1,000 on ads that bring in $3,600 in sales with a 10% new-customer coupon. Your ROAS is 3.6, which many marketers would call a win. But after product costs, you kept only $800 in gross profit. Your GROAS is 0.8, and the campaign lost $200.
How to use the calculator
Enter your ad spend, orders, selling price, and product cost, and add a discount if you offered one. You’ll see your ROAS, GROAS, break-even ROAS, and profit after ad spend instantly. The Pro version adds cross-sells and repeat purchases, and lets you compare several campaigns side by side, with each one judged against a goal that fits its stage of the funnel.
Frequently asked questions
What is a good ROAS?
It depends on your margins. Ratios like 3:1 or 4:1 are often cited as good, but the ROAS you need depends on how much profit each sale leaves you. A product with a 30% gross margin needs a ROAS of about 3.33 just to break even, while a product with a 60% margin breaks even at about 1.67.
How do I calculate break-even ROAS?
Divide 1 by your gross margin after discounts. With a 30% margin, break-even ROAS is 1 ÷ 0.30 = 3.33. Any ROAS below that loses money on the first order. The calculator above works this out for you automatically.
Want the break-even ROAS for every common margin and discount at a glance? The Pro version includes a quick-reference chart, plus a spreadsheet you can customize to your own prices.
What is the difference between ROAS and GROAS?
ROAS compares revenue to ad spend. GROAS compares gross profit to ad spend. ROAS tells you how much you sold; GROAS tells you how much you kept.
Can a campaign that loses money still be worth running?
Sometimes. Campaigns aimed at new customers often lose money on the first order but pay off when those customers buy again. The Pro version’s repeat purchase feature shows whether a campaign earns its cost back over 12 months.