This calculator shows how much revenue you generate for every £1 spent on advertising. It is one of the most important metrics for evaluating marketing performance.
ROAS helps you decide whether to scale campaigns, optimise performance, or stop underperforming ads. It is widely used across Google Ads, Facebook Ads, TikTok Ads, and ecommerce platforms.
However, ROAS alone does not determine profitability — it must be considered alongside margin and costs.
ROAS shows how much revenue you generate per £1 spent. For example, a ROAS of 4.0x means £4 in revenue for every £1 spent.
However, profitability depends on margin. If your margin is 30%, your break-even ROAS is approximately 3.33x. Below this level, you lose money.
ROAS = Revenue ÷ Ad Spend
This simple calculation measures the efficiency of your advertising spend and allows easy comparison between campaigns.
ROAS must be evaluated alongside margin, costs, and customer acquisition cost (CAC). High ROAS does not always mean high profit if margins are low.
The most important concept is break-even ROAS. This is the minimum ROAS required to cover all costs. If your campaigns are below this level, scaling will increase losses.
Strong businesses combine high ROAS with strong margins, allowing them to scale profitably and reinvest in growth.
Example 1:
£1200 revenue / £300 spend → ROAS = 4.0x
Example 2:
£500 revenue / £400 spend → ROAS = 1.25x (likely unprofitable)
Example 3:
Margin 25% → Break-even ROAS ≈ 4.0x
Revenue per £1 of ad spend.
Usually 3x–5x depending on margins.
No, ROI measures profit.