ROAS Calculator

Measure advertising revenue against spend and compare it with a target return.

Enter your values

Change any field. The result is recalculated on this device.

Formula, example and assumptions
Return on ad spend (×)5
Indian rupees
Indian rupees
%

Your result

Local calculation
Return on ad spend (×)5

ROAS shows revenue earned for each rupee spent on ads. Gross profit after ads also uses your gross margin; match revenue and ad spend to the same campaign and period.

Advertising spend
₹1,00,000
Gross margin (%)
50 %
See how this is calculated

Result breakdown

Gross profit after ads
₹1,50,000.00 About ₹1.5 lakh
Break-even ROAS (×)
2
Check the inputs and method

These are your current inputs, not the worked example further down the page.

Revenue attributed to ads
₹5,00,000
Advertising spend
₹1,00,000
Gross margin (%)
50 %

Method

ROAS = attributed revenue ÷ ad spend. Gross profit after ads = revenue × gross-margin percentage ÷ 100 − ad spend. Break-even ROAS = 100 ÷ gross-margin percentage. Spend and gross-margin percentage must be positive.

Read the worked example and assumptions

How this calculation works

ROAS compares attributed sales with advertising spend, while the gross-margin input tests whether those sales can pay for the campaign. A large revenue multiple can still lose money when fulfilment and product costs consume most revenue. Match the attribution window, refunds and tax treatment used in both the campaign report and the margin estimate.

ROAS = attributed revenue ÷ ad spend. Gross profit after ads = revenue × gross-margin percentage ÷ 100 − ad spend. Break-even ROAS = 100 ÷ gross-margin percentage. Spend and gross-margin percentage must be positive.

Worked example

This example uses illustrative inputs. Your current result is shown above.

₹3,00,000 attributed revenue from ₹1,00,000 ad spend gives ROAS 3×. At a 25% gross margin, gross profit before ads is ₹75,000, leaving a ₹25,000 loss after ads. Break-even ROAS is 100 ÷ 25 = 4×.

Assumptions and limits

  • Gross margin is measured before this advertising spend; including the same campaign cost in margin would subtract it twice.
  • Revenue attribution is supplied by you. Fixed overhead, repeat purchases, attribution errors and future customer value are not estimated.

Questions people ask

Is ROAS the same as return on investment?

No. ROAS uses revenue over ad spend. Profit-based ROI also depends on the cost of producing and delivering the sales.

Why can a campaign with ROAS above 1 lose money?

Only the gross-margin share of revenue is available to pay for ads. The break-even multiple rises as that share falls.

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