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AREM Labs

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ROAS Calculator

Calculate ROAS, ACOS, break-even targets, and net profit from ad spend and revenue. Compare campaign returns privately inside your browser without data uploads.

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What is left after product cost and marketplace commission

ROAS (revenue / ad spend)

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Enter a margin to also get break-even ROAS and net profit.

Tips

  • Enter your gross margin percentage after deducting product cost, shipping, and marketplace commissions.
  • Break-even ROAS equals 100 divided by your margin, so a 25% margin requires at least a 4x ROAS to avoid losses.
  • Add your total order count to compute your ad spend per converted customer or order.

How to use it

  1. 1 Enter your total ad spend and the gross revenue generated during the exact same campaign period.
  2. 2 Input your gross profit margin percentage after subtracting wholesale cost, shipping, and sales commissions.
  3. 3 Optionally add the total number of converted orders to see your ad spend per transaction.
  4. 4 Compare your actual ROAS against the break-even ROAS to determine if the campaign is generating profit.

What you should know

Return on Ad Spend (ROAS) divides campaign revenue by total advertising spend. A 4x ROAS means every dollar spent generates four dollars in gross sales, but top-line revenue does not guarantee profitability. If your gross profit margin after production, packaging, shipping, and merchant fees is low, high advertising revenue can still produce net losses. The true viability threshold is break-even ROAS, calculated as 100 divided by your gross margin percentage. Knowing your threshold prevents scaling unprofitable ads across Google Ads, Meta, Amazon, or marketplace channels like Trendyol, the largest e-commerce platform in Turkey.

This calculator computes ROAS alongside Advertising Cost of Sales (ACOS), gross profit, post-ad net profit, and acquisition cost per order. By entering your campaign spend, total revenue, and product profit margin, you immediately see whether your current return clears the break-even line. All calculations execute locally inside your web browser using client-side JavaScript, ensuring your financial margins, advertising budgets, and sales volumes remain strictly confidential. The tool evaluates direct campaign attribution and assumes consistent margin figures across the aggregate sales batch rather than calculating tiered inventory variations individually.

Frequently asked questions

What is the difference between ROAS and ACOS?

ROAS and ACOS represent the same performance ratio from opposite perspectives. ROAS divides revenue by ad spend to show return as a multiplier (like 4x), whereas ACOS divides spend by revenue to express ad cost as a percentage (like 25%).

What is considered a good ROAS?

A profitable ROAS depends entirely on your profit margin. Any ROAS above your break-even threshold (100 divided by margin) is profitable, though e-commerce brands typically target 1.5 times the break-even rate to cover fixed overheads.

Should I include sales tax or VAT in spend and revenue?

Keep your tax treatment consistent across both figures. If you enter gross revenue including VAT or sales tax, enter your total ad spend including tax as well to maintain accurate margin ratios.

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