ROAS Calculator
Calculate your return on ad spend across all channels. Compare Meta, Google, and TikTok performance and find your break-even ROAS.
Ad Performance
Results
What Is Return on Ad Spend (ROAS)?
ROAS measures the revenue generated for every dollar spent on advertising. It's the most important metric for ecommerce merchants running paid ads because it directly tells you whether your ad spend is generating profit or burning cash.
Unlike ROI, which considers total investment and profit, ROAS focuses specifically on ad efficiency: how much revenue each ad dollar produces. A ROAS of 4.0x means you earn $4 for every $1 spent.
ROAS Benchmarks by Channel
Average ROAS varies by platform. Meta (Facebook/Instagram) ads typically achieve 2.5-4x for ecommerce. Google Search ads tend to have higher ROAS (4-8x) due to high purchase intent. TikTok ads are newer with more volatile returns, typically 1.5-3x but with the potential for viral outliers.
Your target ROAS should be based on your profit margins, not industry averages. Use the break-even calculator above to find the minimum ROAS you need to be profitable.
Related Resources
- Unit Economics: CAC, LTV, and LTV:CAC
- What-If Scenario Modeling for Pricing
- Sunforce AI CFO
- LTV:CAC Calculator
Frequently Asked Questions
What is a good ROAS for ecommerce?
A ROAS of 3x or higher is generally considered good for ecommerce. A 2x ROAS typically means you're breaking even after costs. However, the 'good' threshold depends on your profit margins — a store with 70% margins profits at 2x, while one with 30% margins needs 4x+.
How do you calculate ROAS?
ROAS = Revenue from Ads ÷ Ad Spend. For example, if you spend $1,000 on ads and generate $4,000 in revenue, your ROAS is 4.0x. This means you earned $4 for every $1 spent on advertising.
What is break-even ROAS?
Break-even ROAS is the minimum return you need just to cover your costs. It equals 1 ÷ Profit Margin. If your profit margin is 40%, your break-even ROAS is 2.5x — anything above that is profit.
Track your ROAS automatically
Sun tracks your ROAS by channel in real-time and alerts you the moment it drops below your threshold. No manual calculations needed.
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