Free Tool

Facebook Ads ROAS Calculator

Calculate your Break-Even ROAS, Actual ROAS, and Total Profit in seconds. Know exactly if your ads are making or losing money.

Enter Your Ad Data

How much you spent on ads

Average cost per click

% of clicks that buy

%

Average order value

Gross margin (defaults to 40% if empty)

%
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Setup takes 2 minutes

What is ROAS? The Complete Guide for 2026

Return on Ad Spend (ROAS) is the most fundamental metric in performance marketing. It measures how much revenue you generate for every unit of currency you spend on advertising. Unlike ROI (which accounts for all costs), ROAS specifically isolates the relationship between ad spend and the revenue it directly generates.

For D2C brands and eCommerce businesses running Meta Ads (Facebook and Instagram), ROAS is the north star metric. A ROAS of 1.0x means you broke even on ad spend alone — but since it doesn't account for product costs, you're actually losing money. A ROAS of 3.0x on a product with 40% margins means you're generating 20% net profit on ad spend.

The ROAS Formula Explained

// The Core Formula

ROAS = Revenue Generated ÷ Ad Spend

// The Break-Even Formula (Crucial)

Break-Even ROAS = 1 ÷ Gross Profit Margin

// Example Calculation

Ad Spend: ₹10,000

Revenue: ₹40,000

Margin: 40%

ROAS = ₹40,000 ÷ ₹10,000 = 4.0x

Break-Even ROAS = 1 ÷ 0.40 = 2.5x

What is a Good ROAS for eCommerce in 2026?

Industry / CategoryTarget ROASTypical Margin
Fashion & Apparel3x – 5x35–50%
Electronics & Gadgets4x – 8x15–25%
Beauty & Skincare3x – 6x50–70%
Food & Beverages (D2C)2x – 4x30–45%
Health & Supplements3x – 5x40–60%
SaaS / Subscription3x – 6x60–80%
High-Ticket (₹10k+)2x – 3x40–60%

Frequently Asked Questions