Skip to content
Kaagazo.
FreeAD EFFICIENCY

ROAS Calculator

Calculate Return on Ad Spend for Facebook, Instagram, and Google ads to measure ad efficiency.

100% client-side. Nothing you type is uploaded or stored on a server.

"₹20,000 spent, ₹1,10,000 in sales — 5.5× ROAS!" is the sentence that gets a campaign renewed, and it can still be a loss-making campaign. Return on ad spend is revenue from ads divided by ad cost; it is the right metric for comparing campaigns and audiences, and the wrong one for deciding profitability unless you know your margin. This calculator computes ROAS, the break-even ROAS your margins require, and the profit (or loss) the campaign actually produced, for Meta, Google, marketplace and influencer spend.

The formulas

  • ROAS = Revenue attributed to ads ÷ Ad spend. ₹1,10,000 ÷ ₹20,000 = 5.5× (or 550%).
  • Break-even ROAS = 1 ÷ Gross margin. At a 35% gross margin, you need 2.86× just to cover product cost and the ad; at 20%, 5×.
  • Profit = Revenue × Gross margin − Ad spend − Other variable costs. For the example at 35% margin: 38,500 − 20,000 = ₹18,500 before shipping, fees and returns.

Include GST on ad invoices as a cost unless you claim it as ITC, and use revenue excluding GST — otherwise ROAS is inflated by 5–18%.

How to use the calculator

  1. Enter ad spend for the campaign or period (include agency fees and creative cost if you want fully loaded ROAS).
  2. Enter revenue attributed to the ads (from the platform's conversion report, coupon codes or UTM-tagged orders), excluding GST.
  3. Enter gross margin % (from the gross margin calculator) and, optionally, other variable costs per order — shipping, payment fees, marketplace commission.
  4. Read ROAS, break-even ROAS and campaign profit; compare across campaigns in table mode.
  5. Convert to ROI and CAC with one click to see the same campaign three ways.

Reading platform-reported ROAS

  • Attribution windows (7-day click, 1-day view) overstate revenue; orders that would have happened anyway get counted.
  • Marketplace ads (Amazon/Flipkart sponsored products) report ACoS — the inverse of ROAS (ACoS 20% = 5× ROAS).
  • Blended ROAS (all revenue ÷ all ad spend) is the honest check when attribution is messy.
  • New vs returning: a 6× ROAS on retargeting existing customers is cheap revenue but not growth; segment it.

Improving ROAS

Seasonal campaigns need a plan before the spend — the eight-week timeline is in Festive season 2026 checklist — and which AI ad tools are worth paying for is covered in AI for the small shop in 2026.

Frequently asked questions

What is a good ROAS?

Above your break-even ROAS with room for other costs — typically 3–5× for D2C products at 30–40% margin, 8–10× for low-margin categories. A "good" ROAS is one that leaves profit after margin, shipping and fees.

ROAS vs ROI — which should I use?

ROAS to compare campaigns; ROI (profit-based) to decide whether to keep spending. The calculator shows both.

Should ad spend include GST?

Include the 18% GST if you are unregistered or cannot claim it; exclude it if you claim ITC. Be consistent with how you treat revenue.

How do I attribute revenue to ads?

Platform conversion tracking, campaign-specific coupon codes, UTM-tagged links, and a "how did you hear about us?" field. Cross-check the total against blended ROAS.

My ROAS is 4× but I am losing money — why?

Your margin after shipping, fees and returns is below 25%, so break-even ROAS is above 4×. Raise margin, cut variable costs, or advertise higher-margin products.