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ROAS Calculator

A ROAS of "4x" sounds good until you know your margin - a low-margin product needs a much higher ROAS to actually be profitable than a high-margin one does. This calculator compares your actual ROAS against the break-even ROAS your margin requires, so you know whether a campaign is genuinely working or just generating vanity revenue.

Inputs
%
Results
ROAS
3.80xAbove break-even
Break-even ROAS3.33x
Ad spend as % of ad revenue26.3%
Other costs (flat)₹0
Net profit after ad spend₹1,400

What each field means

Ad Spend
Total amount spent on the campaign or period you're evaluating.
Revenue from Ads
Total revenue directly attributed to that ad spend, from your ads platform's reporting.
Product Profit Margin
Your product's profit margin before ad spend is deducted - used to calculate the break-even ROAS, the minimum return the campaign needs to not lose money.
Other Costs
Any extra flat cost tied to running this campaign that isn't already inside ad spend - agency fees, campaign tools, creative production. Entered as a total for the period, not per order, since ROAS itself works on campaign totals.

How to use the ROAS Calculator

  1. Enter total ad spend and the revenue your ads platform attributes to it.
  2. Add your product's profit margin (before ad spend) - use the Profit Calculator if you're not sure of this number.
  3. Add any Other Costs tied to this campaign as a flat total, if applicable.
  4. Compare your ROAS to the break-even ROAS shown - anything above it is adding real profit, not just revenue.

The formula

CalculationROAS = Revenue ÷ Ad spend. Break-even ROAS = 100 ÷ Profit margin%. Net profit after ads = (Revenue × Margin%) − Ad spend − Other costs

Frequently asked questions

What is a good ROAS for ecommerce in India?

There's no universal number - it depends entirely on your margin. A product with a 50% margin can be profitable at a 2x ROAS, while a product with a 15% margin needs closer to 6-7x just to break even. Always compare your ROAS to your own break-even ROAS, not a generic benchmark.

How is break-even ROAS calculated?

Break-even ROAS is 100 divided by your profit margin percentage. At a 25% margin, you need a 4x ROAS just to cover ad spend - anything above that is genuine additional profit.

Does ROAS account for returns and marketplace fees?

Not directly - ROAS only compares ad spend to attributed revenue. Feed in a margin figure from the Profit Calculator (which accounts for fees, shipping, and returns) to get a break-even ROAS that reflects your real economics.

Why is Other Costs a flat total here instead of a per-unit field?

Because ROAS and this calculator both work on campaign-level totals - ad spend and attributed revenue for a period, not a single order - so any extra campaign cost (agency fee, tools, creative) is entered the same way: as one flat total for that period.