ROAS Calculator for PPC / SEA

Q: What’s the difference between ROAS and ROI?

ROAS measures return versus ad spend only. ROI measures overall profit, including product costs and other expenses. Use ROAS for channel efficiency; use ROI for total profitability.

ROAS Calculator EN version

Frequently Asked Questions about our ROAS Calculator

What is ROAS and how do I calculate it?

ROAS (Return on Ad Spend) shows how much revenue you earn for each unit of ad spend. Formula: ROAS = Revenue ÷ Ad Spend. Example: €5,000 revenue / €1,000 spend = 5.0 (500%).

What’s the difference between ROAS and ROI?

ROAS measures return vs ad spend only. ROI measures overall profit, including product costs and all other expenses. Use ROAS for channel efficiency; use ROI for total profitability.

How do I calculate break-even ROAS (BEROAS)?

Break-even ROAS is the ROAS you need to cover all variable costs (COGS, shipping, fees, discounts, etc.). Formula: BEROAS = 1 ÷ Profit Margin (after variable costs). If your margin is 30%, BEROAS = 1 ÷ 0.30 = 3.33 (333%).

Should I include VAT, refunds, shipping, and discounts?

Use net revenue (exclude VAT you remit). Subtract refunds/returns. Include discounts in net revenue. Treat shipping paid by you, payment fees, and packaging as variable costs when figuring profit margin for BEROAS.

What is a “good” ROAS and how do I set a target?

A “good” ROAS is any value above your BEROAS. Start with BEROAS, then add your desired profit. Example: if BEROAS is 3.0, aim for ≥3.5–5.0 depending on your profit goals, product margins, and payback window.