ROAS & break-even calculator

Find out whether your ads are making money. Enter what you spent and what you sold to get your ROAS, then add your profit margin to see the break-even point and the ROAS you should aim for.

1. Your campaign

₹
₹

2. Your profit margin

%
What you keep from each ₹100 of sales after product, delivery and other costs, but before advertising.
%
Your ROAS–

How ROAS works

  • ROAS (return on ad spend) = sales from ads ÷ ad spend. A ROAS of 4x means ₹4 of sales for every ₹1 spent.
  • Break-even ROAS = 1 ÷ profit margin. With a 40% margin you need 2.5x just to cover the ad cost. Below that, every sale loses money.
  • Target ROAS = 1 ÷ (margin − profit you want). With a 40% margin and a 15% profit goal, aim for 4x.
  • ROI = (profit from ad sales − ad spend) ÷ ad spend. This is the real return after costs.

A “good” ROAS is different for every business. A high-margin product can be profitable at 2x, while a low-margin one may need 8x. That’s why the break-even number matters more than any industry average.

Questions

Should brand and awareness campaigns be judged on ROAS?

Not on their own. CTV, video and awareness campaigns build demand that turns into sales later, often through search or direct visits, so their direct ROAS looks low. Judge them on reach, completion rates and the lift in branded searches and sales over time.

Which sales should I count?

Use the sales your ad platform or Google Analytics credits to the campaign, for the same dates as the spend. Leave out GST and use sales after returns and cancellations if you can.

Is ROAS the same as ROI?

No. ROAS only compares sales with ad spend. ROI also takes off your product and running costs, so it shows actual profit.

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