Answers to the most common ROAS and profitability questions.
ROAS (Return on Ad Spend) is revenue divided by ad spend. A 4x ROAS means $4 in revenue for every $1 spent.
Break-even ROAS is the minimum ROAS needed to avoid losing money. It depends on your profit margin.
Use the formula 1 divided by profit margin. If margin is 40%, break-even ROAS is 2.5.
Not always. A high ROAS is helpful, but profit also depends on margins, returns, and overhead.
Common reasons include weak creatives, slow landing pages, poor targeting, and incorrect tracking.
Many e-commerce brands target 3x to 5x, but the right number depends on margins and LTV.
ROAS focuses on ad revenue vs ad spend. ROI includes all business costs and profit.
At least 50 conversions is a common minimum so the data is stable.
It is effective at scale with stable conversion data. For new accounts, start with conversion optimization first.
It typically uses gross revenue. Use the calculator to include costs for true profit analysis.
Test new creatives, improve landing page speed, and focus budgets on top-performing audiences.
No. Calculations are done in your browser and are not saved on our servers.
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