What ROAS do you actually need?
Type in what an order brings in and what it costs you. You'll see your break-even ROAS, the ROAS for the profit you want, and the profit and loss on your ads. It takes about a minute, and nothing you type is sent anywhere.
Your results
Your break-even ROAS is 1.78. With 25% off, it jumps to 2.40.
- You keep $45.00 of each $80.00 order before ads (56%).
- The most you can spend on ads to win one order and break even: $45.00.
- To keep 10% profit after ads: aim for a ROAS of 2.16, or up to $37.00 in ads per order.
✓ Your 2.00 clears it: about $13 profit for every $100 in ads
- You keep $25.00 of each $60.00 order before ads (42%).
- The most you can spend on ads to win one order and break even: $25.00.
- To keep 10% profit after ads: aim for a ROAS of 3.16, or up to $19.00 in ads per order.
✕ Your 2.00 falls short: about $17 loss for every $100 in ads
Your ads, profit and loss
✓ Making money: about $125 after ads
| Revenue from ads | $2,000 |
| Product cost (about 25 orders) | −$750 |
| Shipping and packaging | −$125 |
| Profit before ads | $1,125 (56%) |
| Ad spend | −$1,000 |
| Profit after ads | $125 (6.3%) |
- Your ROAS: 2.00 (break-even 1.78)
- ROI on your ad spend: 12.5% (profit after ads, divided by ad spend)
- Ad cost per order: $40.00
Uses the average order value you entered, and counts only the costs above.
Three numbers, in plain English
Break-even ROAS
The ROAS where your ads pay for the product, the shipping and the fees, and leave you with zero profit. Below it, every ad dollar loses money. Above it, they make money.
Target ROAS
The ROAS you need to keep the profit you asked for, after the ads. It is always higher than break-even.
Cost per order
The most you can pay in ads to win one order. Spend more than the break-even cost per order and that sale loses you money.
Questions brands ask
What's the difference between ROAS and ROI?
ROAS is the revenue your ads bring in, divided by what you spent on them. ROI here is the profit left after ads and product costs, divided by what you spent on ads. A ROAS can look great while the ROI is negative, because ROAS never sees what your products cost.
Why does a discount raise the ROAS I need?
Each order brings in less money, but the product still costs the same to make and ship. So less of every order is left to pay for the ads that won it.
What counts as my average order value?
The average total a customer pays for one order, after discounts. Count the shipping they pay you, and leave out sales tax. To find it, take your sales for a month and divide them by the number of orders. If you do not know your product cost yet, your supplier invoices or your accountant can tell you what the items in an average order cost you.
Which numbers should I use?
Averages from your last 30 to 90 days work well. Use the average order value you actually got, after discounts, and your real cost to make or buy and ship an order.
Can I trust the ROAS my ad platform shows?
It is the platform's own count of the sales it credits to your ads, and some of those sales may have happened without the ads. This calculator tells you how high that number has to be. Whether the number is real is what a Profit Check looks at.
Is anything saved or sent?
No. The math runs in your browser, and this page does not send or save what you type.
Want me to check your real numbers?
A free 30-minute Profit Check. Bring your last 30 to 90 days, and you'll leave knowing whether your ads are making money and what I'd fix first, whether or not we work together.
Book your Profit CheckThree minutes of questions first, so the call is worth your time.