It depends on your profit margins. A ROAS of 4x or higher is generally considered good. If your margins are thin (e.g. 20%), you may need a ROAS of 5x or more to break even after costs. If your margins are high (e.g. 70%), a ROAS of 2x could be profitable.

How do I calculate ROAS?

ROAS = Revenue ÷ Ad Spend. If you spent £1,000 on ads and generated £4,000 in revenue, your ROAS is 4.0x.

What is the difference between ROAS and ROI?

ROAS measures revenue per pound of ad spend. ROI measures profit relative to total investment. ROAS = Revenue ÷ Ad Spend. ROI = (Profit – Investment) ÷ Investment. ROAS is specific to advertising; ROI covers all costs.

ROAS Calculator

ROAS = Revenue ÷ Ad Spend. A ROAS of 4x means you earn £4 for every £1 you spend on advertising. Updated for 2025/26. Free, no signup.

What this calculator does

This calculator works out your return on ad spend in three modes: calculate ROAS from actual revenue and spend, find the revenue needed for a target ROAS, or work out the maximum ad spend for a desired ROAS from known revenue.

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