ROAS calculator
Ad spend in, revenue out, verdict in seconds. Add your gross margin and you also get the number that actually decides profitability: your breakeven ROAS. Free, no signup.
Total spend for the period across the channel or campaign.
Attributed revenue for the same period and channel.
Revenue minus product and fulfillment costs, as a percent. Unlocks your breakeven ROAS.
By the Numbers reports ROAS per channel and campaign, updated daily. See the ad reports
How to read your result
ROAS alone is a revenue metric, not a profit metric. The line that separates scaling from bleeding is your breakeven ROAS: 100 divided by your gross margin percent. A store at a 40 percent margin breaks even at 2.5x, so a 3x campaign is quietly fine and a 2.2x campaign is quietly losing money, even though both look similar in the ads manager.
Two more habits make the number useful. First, judge ROAS per channel and campaign rather than blended, because averages hide the loser you should cut. The full method is in our guide to Shopify advertising costs and budget allocation. Second, sanity-check platform-reported ROAS against a blended measure, because every platform grades its own homework - that trade-off is the subject of ROAS vs MER.
And when a channel clears breakeven, the cheapest way to push it further is usually better audiences rather than more budget: segmentation for retargeting ads covers how stores feed their best-customer segments back into the platforms.
ROAS questions, answered
How do you calculate ROAS?
ROAS is revenue attributed to your ads divided by what you spent on them. $15,000 of attributed revenue on $5,000 of spend is a 3.0x ROAS. Calculate it per channel and per campaign, not just blended, because a strong average can hide a channel that loses money.
What is a good ROAS for a Shopify store?
There is no universal good number because it depends on your gross margin. A 3x ROAS is comfortable at a 50 percent margin and underwater at a 25 percent margin. Compute your breakeven ROAS (100 divided by gross margin percent) first, then judge every channel against that line.
What is breakeven ROAS?
Breakeven ROAS is the return at which an ad dollar stops losing money after product costs: 100 divided by your gross margin percent. At a 40 percent margin, breakeven is 2.5x. Anything below that loses gross profit even though the revenue looks healthy.
Why does my ROAS differ between ad platforms and Shopify?
Every ad platform attributes conversions with its own window and model, and they all claim credit generously. Blended measures like MER (total revenue over total ad spend) and cohort-based payback give you a second opinion that is not graded by the platform spending your money.
Stop calculating ROAS by hand every Monday.
By the Numbers tracks ROAS per channel and campaign daily, next to the retention numbers that tell you which spend produces customers worth keeping.
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