Enter a margin to see break-even ROAS and profit from ads.
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ROAS measures gross revenue per pound spent. Enter a profit margin above to see whether your campaigns are actually profitable.
Improve your ROASFrequently asked questions
What is a good ROAS?
A ROAS of 4x (400%) is often cited as a useful benchmark, but the right number depends entirely on your gross profit margin. At a 25% margin you need a ROAS of 4x just to break even on the cost of goods sold. A business with 50% margins breaks even at 2x. Beyond the break-even point, higher is always better. For Google Ads, a ROAS of 6 to 10x on branded search is common; for broad prospecting campaigns, 3 to 5x is typical in an established account. Enter your margin into the calculator to find your specific break-even point.
What is break-even ROAS?
Break-even ROAS is the minimum return on ad spend needed to cover the cost of goods sold. It is calculated as 1 divided by your gross profit margin expressed as a decimal. At a 25% margin, break-even ROAS is 4x: you need to generate £4 in revenue for every £1 spent on ads to avoid losing money on those sales. Any ROAS below break-even means the campaign is costing you money, even if the revenue figure looks strong. Break-even ROAS does not account for other business costs such as staff, overheads or agency fees.
What is the difference between ROAS and ROI?
ROAS (return on ad spend) is revenue from ads divided by ad spend. It is a channel-level efficiency metric used to compare campaigns and ad groups. ROI (return on investment) is a broader measure that accounts for the cost of goods sold, fulfilment and other business costs, using gross profit rather than gross revenue. A campaign can have a ROAS of 5x but a negative ROI if margins are very thin. Use ROAS to optimise campaigns within a channel; use ROI to judge whether the channel is worth investing in at all.
Want a better return from your ad spend?
Improving account structure, bid strategy and landing pages can all lift ROAS without increasing budget. Tell me about your current campaigns and I will come back with honest, practical recommendations.