What is ROAS?
ROAS (return on ad spend) shows how much revenue you get for every euro spent on ads. If you spend €100 and the ads bring €400 in sales, your ROAS is 4×.
Why break even ROAS matters
A high ROAS does not automatically mean profit. Every order also costs you the product, shipping and fees. Break even ROAS is the point where the ads exactly pay for themselves: below it every sale loses money, above it you start to earn.
Example: an order of €40 that costs €22 in product, shipping and fees leaves €18 before ads. That is a 45% margin, so the break even ROAS is about 2.2×.
How to use the result
- Use break even ROAS as the floor in your reports. A campaign that stays below it for weeks needs new creative, a new offer or a smaller budget.
- Use the ROAS for your target profit as the goal. In Meta you can set it as a ROAS goal, in Google Ads as target ROAS.
- Count repeat purchases separately. If customers come back, a lower ROAS on the first order can still pay off over time.
- Compare the ROAS from the ad platform with real orders in your shop. Platforms count conversions in their own way, so the numbers rarely match exactly.
FAQ
What is a good ROAS?
There is no single good number. A good ROAS is one above your break even point that leaves the profit you planned. A shop with a 70% margin can do well at 2×, while a shop with a 25% margin needs at least 4× just to cover its costs.
Should ad spend include agency fees?
Not in this calculator. Enter only what you pay to the ad platforms and count agency or freelancer fees as a fixed monthly cost, separately from ROAS.
Why is the ROAS in Meta different from my shop's numbers?
Ad platforms credit sales by their own rules, for example a few days after a click or a view, while your shop counts every order. That is why we always compare both and set up tracking that makes the gap smaller.
The tool only uses what you enter. Nothing is sent or stored.