ROAS Calculator

Is Your ROAS Actually Profitable?

A 3× ROAS (return on ad spend) sounds great — until you factor in your product costs (COGS). See your true profit after everything.

ROAS Performance

ROAS Gauge showing 3.75× return
3.8×
Standard ROAS
Good Performance

Your ads are generating positive returns

Standard ROAS
3.75×
Before costs
$375 per $100 spent
True ROAS
2.25×
After COGS
$225 per $100 spent
0×2×4×6×
PoorGoodExcellent

Values update as you type.

Your Metrics

$
$
%
%
visitors/mo
×
Estimated monthly conversions250
Estimated monthly revenue$18,750

Your Results

Your True ROAS

2.25x

Your real return after product costs (COGS) — the number that decides whether ad spend is actually profitable.

Standard ROAS

3.75x

375% return

Net Profit

$6,250

33.3% margin

Cost Per Acquisition

$20

Total Revenue

$18,750

Conversions

250

Break-Even ROAS

1.67x

Minimum to profit
INDUSTRY BENCHMARK

How you stack up

General ecommerce median from Golden Digital internal planning benchmarks. Benchmarks are directional, not a guarantee; use them as a comparison point alongside your own historical data.

You vs. Industry Average

Your ROAS

—

—

Industry Average

—

Ecommerce median

↑ — above industry average

PoorAcceptableGoodExcellent

SEE HOW YOU COMPARE

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WHAT TO DO NEXT

Your 3 highest-leverage moves

(On Track)

At 3.8x ROAS, you're above break-even (1.7x) — focus on your top 20% performing products for ad spend allocation

Test new creative angles to improve click-through rates

Generate ad concepts

Implement retargeting campaigns for higher-intent audiences

SCENARIOS

What-If Scenario Planner

Explore how different improvements could impact your ROAS and profitability

+0% (2.50% → 2.50%)

Better landing pages, checkout optimization, and A/B testing typically improve conversion by 20-50%

+0% ($75 → $75)

Upsells, cross-sells, and bundles can increase AOV by 15-30%

-0% (40.0% → 40.0%)

Better supplier negotiations and shipping optimization can reduce COGS by 5-15%

Projected Impact

ROAS Improvement
3.75x3.75x
+0.0% increase
Revenue Increase
$0
Additional monthly revenue
Profit Increase
$0
Additional monthly profit
FAQ

Frequently asked questions

Common questions about ROAS calculations and advertising profitability

GLOSSARY

Learn These Key Metrics

Return On Ad Spend
ROAS

The revenue generated for every dollar spent on advertising....

Customer Acquisition Cost
CAC

The total cost of acquiring a new paying customer, including all marketing and s...

Average Order Value
AOV

The average dollar amount customers spend per order/transaction....

Customer Lifetime Value
LTV

The total revenue a business expects to earn from a single customer over the ent...

Cost Per Acquisition
CPA

The cost of acquiring a specific action through a particular campaign or channel...

Marketing Efficiency Ratio
MER

Total revenue divided by total marketing spend, providing a holistic view of mar...

Browse all glossary terms
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FOUND YOUR NUMBER

Found Your Number. What's Next?

If your true ROAS isn't where it should be, the Golden Digital team can help. Free strategy call—no pitch, just clarity.

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