Marketing analytics
Return on ad spend.
Enter the revenue your ads brought in and what you spent on them. Add your gross margin to see profit after ad spend.
ROAS = revenue from ads / ad spend. $5,000 of revenue from $1,250 of ad spend is a ROAS of 4.00, or 400%: $4 of revenue for every $1 spent.
Your numbers
Result
Worked example
Ads brought in $5,000 of revenue and cost $1,250. ROAS = 5,000 / 1,250 = 4.00, which is 400%. With a 40% gross margin the ad revenue carried $2,000 of gross profit, so after the $1,250 of ads you keep $750. Break-even ROAS at a 40% margin is 100 / 40 = 2.5, and 4.00 is above it.
How it works
ROAS = revenue attributable to ads / cost of ads. Shopify writes it as (R / C) x 100 and shows $2,000 of ad revenue on a $1,000 campaign as 200%. This tool shows both the ratio (2.00x) and the percent (200%).
ROAS is revenue, not profit. Shopify notes that an acceptable ROAS depends on your profit margins, operating costs and goals. Enter a gross margin (the share of each sale left after product cost, shipping and fees) to turn ad revenue into gross profit and see profit after ad spend.
Gross profit from ads = ad revenue x margin; profit after ads = gross profit - ad spend. That last step is simple arithmetic on your inputs, not a figure from a platform report.
Sources and basis (opened 2026-10-08): Return on Ad Spend: How To Calculate Your ROAS (2026) - Shopify. Everything else is arithmetic on your inputs.
Inputs are user-entered figures. Results are planning estimates, not financial advice or a forecast of future performance. Everything runs in your browser. Nothing you type is sent or stored.
FAQ
How do I calculate ROAS?
Divide the revenue your ads generated by what you spent on them. $5,000 of revenue on $1,250 of spend is 4.00, or 400% if you multiply by 100.
What is a good ROAS?
It depends on your margins. A ROAS above your break-even ROAS (100 divided by your gross margin percent) makes money before other costs. Use the break-even ROAS calculator for your own number.
Is ROAS the same as ROI?
No. ROAS compares ad revenue with ad spend. ROI compares profit with cost, so it needs your costs of goods and other expenses.
Which revenue should I count?
Only revenue your ads can be credited with, using the same attribution window and period as the spend you enter. Platforms may attribute differently, so compare like with like.