How to use this ROAS calculator
Use this ROAS calculator to check whether ad revenue justifies spend. Enter ad spend, ad revenue, target ROAS, and gross margin. The tool converts the result into ROAS, ACoS, and break-even ROAS so Amazon and paid-media teams can read the same number.
- Use revenue from the same attribution window as spend.
- Set target ROAS from margin, not guesswork.
- Export saved scenarios before budget reviews.
ROAS formula
ROAS equals ad revenue divided by ad spend. If you spend $2,500 and generate $10,000 in attributed sales, ROAS is 4x. That means each dollar spent on ads produced four dollars in sales.
ROAS and ACoS are two views of the same relationship. ROAS goes up as ad efficiency improves. ACoS goes down as ad efficiency improves.
How to read the result
A high ROAS is useful only when it supports the business goal. Mature products may need strict ROAS targets. Launch campaigns can accept lower ROAS if they improve organic rank, reviews, or inventory velocity.
- Use strict ROAS targets for profit campaigns.
- Use looser targets for ranking campaigns.
- Compare ROAS against stock position before scaling spend.
Frequently Asked Questions
What is ROAS?
ROAS means return on ad spend. It shows how much ad revenue you get from each dollar spent.
What ROAS equals 25% ACoS?
A 4x ROAS equals 25% ACoS. Divide 100 by ACoS to convert ACoS into ROAS.
Should I optimize for ROAS or ACoS?
Use whichever metric your team reads faster. ACoS is common in Amazon Ads. ROAS is common in broader paid media.