ROAS / CPA / ROI Calculator
Calculates ROAS (return on ad spend), CPA, ROI, average order value and break-even ROAS. Essential for any performance team running Meta Ads, Google Ads and TikTok Ads.
Optional: enables break-even ROAS
Formulas used
- ROAS = revenue ÷ spend
- CPA = spend ÷ conversions
- Avg. order = revenue ÷ conversions
- ROI = (revenue − spend) ÷ spend × 100
- Break-even ROAS = 100 ÷ margin %
Market benchmarks
- • ROAS 2-4× is the healthy baseline for e-commerce
- • ROAS < 1.5× typically means losses with margin < 50%
- • Fashion: average ROAS 3-5×
- • Electronics: ROAS 4-8× (high ticket)
- • Beauty/cosmetics: ROAS 3-6×
How it works
How to calculate ROAS, CPA and ROI
ROAS (return on ad spend) measures how much revenue each dollar spent on ads generates, using the formula ROAS = revenue ÷ spend. From the same inputs the calculator also returns CPA = spend ÷ sales, average order value = revenue ÷ sales, and ROI, which nets out the cost: ROI = (revenue − spend) ÷ spend.
Say you invested R$ 5,000 in Meta Ads and earned R$ 20,000 from 200 orders. The ROAS is 4, meaning R$ 4 of revenue for every R$ 1 spent. The CPA lands at R$ 25 per sale, the average order value at R$ 100, and the ROI at 300%, since R$ 15,000 was left over above what you put in.
As a benchmark, a ROAS above 4 is usually healthy for e-commerce, while below 2 calls for a review of creative, audience, or product page. The right number depends on your margin: also work out your break-even ROAS (1 ÷ margin) to know the floor above which the campaign truly turns a profit on Meta, Google, or TikTok Ads.
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FAQ
Frequently asked questions
- What is ROAS and how do I calculate it?
- ROAS (Return on Ad Spend) measures the return on your advertising investment. The formula is ROAS = revenue generated ÷ ad spend. A ROAS of 4 means every $1 invested returned $4 in revenue. This calculator is free and runs in your browser instantly.
- What's the difference between ROAS, CPA and ROI?
- ROAS = revenue ÷ ad spend (gross return). CPA = ad spend ÷ number of sales (cost per acquisition). ROI = (revenue − total cost) ÷ total cost, which factors in your margin, not just revenue. This calculator returns all three at once.
- What is break-even ROAS?
- Break-even ROAS is the minimum return at which a campaign neither profits nor loses money: below it you pay to sell. It's calculated as 1 ÷ contribution margin. If your margin is 25%, break-even ROAS is 4; you only profit above that.
- Is the ROAS Calculator free?
- Yes, the calculator is 100% free and runs right in your browser with no signup. Enter your ad spend, revenue and number of sales, and it computes ROAS, CPA, ROI, average order value and break-even ROAS instantly.
- What is a good ROAS on Meta Ads and Google Ads?
- There's no universal number: a good ROAS depends on your margin. Always compare against the break-even ROAS the calculator shows; anything above it is already profit. E-commerce typically targets 3x to 5x, but low margins require a higher ROAS.
