ROAS calculator

It depends on your margin. A store with a 70% gross margin makes money at a ROAS of 2. A store with a 25% margin loses money at a ROAS of 3. Compare your ROAS with your break-even ROAS, which is 1 divided by your gross margin; the break-even ROAS calculator does that in seconds. Averages vary by industry, price point and business model, so treat any single benchmark with care.

ROAS measures revenue against ad spend only. ROI measures profit against cost. Google Ads Help defines ROI as revenue minus cost of goods sold, divided by cost of goods sold. A campaign can have a high ROAS and a negative ROI when the product margin is thin or other costs are high.

Meta's Purchase ROAS metric is purchase conversion value divided by amount spent. The conversion value is what your pixel, Conversions API or app events send with each purchase. Meta notes that some events may be modeled when data is partial, and that the metric may not be calculated in some iOS 14+ cases.

Google Ads uses conversion value divided by cost, shown as a percentage. Its Target ROAS help page gives $5 in sales for $1 of ad spend as a 500% target ROAS. A ROAS of 4 in Meta's format is 400% in Google's.

Attribution. Meta and Google count the conversions their ads touched inside an attribution window, so each platform's ROAS uses its own conversion value, not your total revenue. Two platforms can both claim the same order. For a blended view, divide total revenue by total ad spend across every channel.