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Free tools · 07 · ROAS

ROAS & break-even ROAS calculator

See whether your ads actually make money — not just revenue.

Quick answer: ROAS = ad revenue ÷ ad spend. Break-even ROAS = 1 ÷ contribution margin. Your ads are profitable only when ROAS is above break-even ROAS.

Your ROAS
3.50×
Break-even ROAS
2.50×
Target ROAS for your profit goal
4.00×
Ad profit
₹40,000
Profitable

You are above break-even. Scale carefully and watch for ROAS decline as spend grows.

Frequently asked questions

What is ROAS?

ROAS (return on ad spend) is revenue from ads divided by ad spend. ₹4,00,000 revenue from ₹1,00,000 spend is a 4× ROAS.

What is break-even ROAS?

Break-even ROAS is the ROAS at which ad profit is zero. It equals 1 ÷ contribution margin. With a 40% margin after product, shipping and fees, break-even ROAS is 2.5×.

What is a good ROAS in India?

A good ROAS is any ROAS comfortably above your break-even ROAS. For many Indian D2C brands with 35–50% margins, break-even sits at 2–3×, so 3.5–5× is healthy. There is no universal number.

Is ROAS the same as ROI?

No. ROAS uses revenue; ROI uses profit. A 3× ROAS can still lose money if margins are thin, which is why this calculator shows profit too.

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